Moving averages smooth out price data to reveal trends. The 50-day and 200-day MAs are widely watched. When the 50-day crosses above the 200-day, it's called a "Golden Cross" — a bullish signal.
Answer: The average closing price over the last 50 days. A 50-day MA is the average of the last 50 closing prices, updated daily as older prices drop off.
Answer: 50-day MA crosses above the 200-day MA. The Golden Cross is a bullish signal where the short-term MA crosses above the long-term MA.
Answer: 50-day MA crossing below the 200-day MA. The Death Cross is bearish — the 50-day MA drops below the 200-day MA, signalling potential downtrend.
Answer: Give more weight to recent prices. EMAs weight recent prices more heavily, making them more responsive to current price action than simple MAs.
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