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Investing & the Stock Market vocabulary · Technical & Fundamental Analysis

Moving average

Meaning in investing & the stock market, with examples

/ˌmuːvɪŋ ˈævərɪdʒ/nounCommon term

In investing & the stock market, moving average means: The average price of a security over a fixed number of recent days, recalculated every day, used to smooth out short-term swings and show the trend.

In Turkish: hareketli ortalama

How it is used

One of the most used tools in technical analysis. Traders watch the 50-day and 200-day moving averages; a price that breaks above or below them is seen as a signal. When the 50-day crosses above the 200-day, chartists call it a golden cross; the opposite is a death cross.

Example sentences

  1. The stock is trading below its 200-day moving average for the first time this year.

  2. Many traders use the 50-day moving average as a guide to the medium-term trend.

Common collocations

  • 50-day moving average
  • 200-day moving average
  • break above the moving average
  • exponential moving average
  • technical analysisA way of studying past prices and trading volume on charts to identify trends and patterns that traders use to time their buying and selling.
  • support levelA price level where a falling stock has often stopped and turned back up in the past, because buyers tend to step in at that price.
  • resistance levelA price level where a rising stock has often stopped and turned back down in the past, because sellers tend to appear at that price.
  • candlestick chartA price chart in which each period is shown as a 'candle': the body shows the opening and closing prices, and thin lines show the highest and lowest prices.

More terms: Technical & Fundamental Analysis

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This page explains English vocabulary for learners. It is not financial advice.