Technical Analysis
Moving Average — Definition & Example
A line plotting the average price over a rolling window — smooths noise to reveal trend direction.
A moving average (MA) takes the mean of closing prices over the last N bars. Price above the MA suggests uptrend; below suggests downtrend. MAs are widely used as dynamic support/resistance and as crossover signals (e.g., 50 MA crossing above 200 MA = "golden cross"). The two main flavours are SMA (simple, equal weighting) and EMA (exponential, recent prices weighted more).
Example
NIFTY trades at 24800 with the 50-day SMA at 24400 and 200-day at 23900. Price is in clear uptrend with both MAs sloping up. Pullbacks to the 50 MA often offer trend-aligned long entries.
Related
See moving average in your own trades
Upload your tradebook — TradeSaath calculates this automatically.
Try it free →