7.17What is the 50-day moving average?
1What is it?
The 50-day MA (50 DMA) is the average close of the last 50 trading days (about 2.5 months), a medium-term trend guide.
2Why does it exist?
Widely watched by traders. Pullbacks in strong stocks often find support near it.
3Quick revision
- ~2.5 months average.
- Medium-term trend.
- Often acts as support or resistance.
4Knowledge check
Q1. About how many months is 50 trading days?Show answer
About 2.5 months.
Q2. What can the 50 DMA act as in an uptrend?Show answer
Support.
Q3. Is it a short-, medium- or long-term guide?Show answer
Medium-term.