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by Answer Rabbit on April 27th, 2006

Answer Rabbit

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I've heard that the "50-day moving average" is important when evaluating stocks. What is this?

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Answers. 2 helpful answers below.

  • by R_Berue on May 2nd, 2008

    R_Berue

    In a typical or average trading year, there are approximately 200 days when the market is open and stocks are traded.

    The 50-day Moving Average is the approximate number of trading days in one trading quarter or three month period.

    When looking at and analyzing a stock's chart, Moving Since the ads on this site are Averages ["M.A.s"] are the basis for support [lows] and resistance [highs].

    By doing a Google search for "Moving Averages" and/or "Stock support and resistanceYou could oprobably get a clearer picture of Moving Averages
    and what they represent.

    Thanks for asking your Q! I enjoyed answering it!

    VTY,
    Ron Berue
    Yes, that is my real last name!

    Sources: My wonderful family!

    My wonderful coaches and mentors!

    THE TWO [2] ABSOLUTE BEST, MOST wonderful trading groups in the world, which I am most proud to be a member of!

    Trading options and stocks more than 2 years.

    “THE University of Hard Knocks"

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  • by JackNicklaus on April 27th, 2006

    JackNicklaus

    A moving average is just the average price using the last 50 days. The idea is all stocks go up or down on most days. If the stock is currently below the 50 day average, it might indicate it's could go up. It's a pretty weak strategy if you ask me. It's just another fact to consider in the overall decision making process.

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