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Stocks

Moving Averages and Trend

Smoothing noise to see direction.

A 50-day moving average is the average close of the last 50 sessions, recalculated daily. It smooths noise so the trend is visible.

Price above a rising long-term average is the simplest definition of an uptrend. Crossovers (50 above 200) are popular signals but lag badly.

Moving averages describe the past. They're useful for context and stop placement, not prophecy.