MA 50
Trend
The 50-day average: the standard reference for the medium-term trend and one of the most closely watched lines in the market.
Construction & calculation
- Average of the closing prices over the past 50 trading days (about a quarter).
- In the scanner's chart module the MA50 is drawn as an EMA (exponential, recent days weigh more), so the line reacts faster.
- In the Golden Cross calculation the classic SMA (plain average) is used.
SMA(50) = sum of the last 50 closing prices / 50
Interpretation
- Price above the MA50 = medium term is bullish; below it = the trend is broken or turning.
- Because so many market participants watch this line, in practice it often acts as a support or resistance level (a self-fulfilling prophecy).
- A pullback to the MA50 in an uptrend is frequently used by trend followers as an entry zone.
Watch-outs & pitfalls
- Gives no signal, only context. In the scanner the MA50 is not a separate buy/sell signal in the matrix; it serves as a background line and as input for the Golden Cross.