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Moving averages (50-day, 200-day)

The average closing price over the last 50 or 200 trading days, redrawn each day. Shows the trend with the daily noise smoothed out.

A 50-day moving average follows the medium-term trend; a 200-day average the long-term trend. A price above both is in an uptrend by this common definition; below both, a downtrend.

When the 50-day crosses above the 200-day, traders call it a golden cross; below, a death cross.

Why it matters

Moving averages are self-reinforcing to a degree: many institutions use the 200-day as a trend filter, so prices crossing it can draw buying or selling. On their own they lag the price and generate false signals in sideways markets.

On FinVolio

Drawn on every market and coin chart. The Trend and risk table states where the price sits relative to both.

General information, not advice.