Moving Average Definition For Stocks

A Moving Average is an average of all of the closing prices of a stock or ETF over a time period, most often specified in days.

They are used to identify trends in a security’s pricing and price movement.

For the sake of this publication, we focus on the 10-Day Moving Average (2 trading weeks), the 50-Day Moving Average (10 trading weeks, ~ 2.3 months) & the 200-Day Moving Average (40 trading weeks, ~9.2 months).

This gives us a good view of current performance, vs. a security’s performance over the better part of a year.