Glossary · Charts and markets
Moving average
A moving average is the average closing price over the last set number of days, recalculated each day. The 50-day and 200-day averages are the most watched. A simple moving average weights each day equally, and an exponential moving average gives recent days more weight.
Traders use moving averages to judge trend: a stock above a rising 50-day average is in an uptrend by most definitions. The share of stocks above their own moving average is also a common market breadth measure.
Related terms
General education about trading terms, not advice to buy or sell any security. Tax rules are for FY 2026-27; check your return with a chartered accountant.