The 50-day simple moving average (SMA) is commonly plotted on charts and utilized by traders and market analysts because historical analysis of price movements shows it to be an effective trend indicator.
Key Takeaways
The 50-day simple moving average (SMA) is used by traders as an effective trend indicator.
Along with the 100- and 200-day moving averages, the 50-day average is a key level of support or resistance used by traders.
The 50-day average is considered the most important because it’s the first line of support in an uptrend or the first line of resistance in a downtrend.
If the …
