# What are Moving Averages

> Simple vs exponential, slope, support, crosses and riding the 50-day average.

Canonical: https://getmarketstrength.com/watch-what-are-moving-averages
Last updated: 2026-11-07

English · 3:17 · Published 2026-10-28

Simple vs exponential, slope, support, crosses and riding the 50-day average.

## What the video says

A stock chart is noisy. Prices jump up and down every day. A moving average smooths out that noise, so you can see the trend underneath.

A fifty day moving average is simply the average closing price of the last fifty days. Each day, the newest price comes in and the oldest drops out, so the line moves along with the price.

There are two common types. A simple average gives every day the same weight. An exponential average gives more weight to recent days, so it reacts faster.

Different lengths tell different stories. The twenty one day EMA is the short-term trend. The fifty day is the medium-term trend. And the two hundred day is the long-term trend.

The first thing to read is the slope. A rising average means buyers are in control. A falling average means sellers are. A flat average means there is no trend.

The second thing is where the price sits. Above a rising average is strength. Below a falling average is weakness.

Third, in strong uptrends the averages act like a floor. Pullbacks often stop near the twenty one day or the fifty day, and then the trend carries on.

Fourth, the order of the averages. When the short average is above the medium, and the medium is above the long, the trend is healthy. That is exactly what the trend template checks.

When the fifty day crosses above the two hundred day, it is often called a golden cross. The opposite is a death cross. Both come late, so treat them as confirmation, not as a trigger.

A warning: averages lag. They follow the price, they never predict it. In sideways markets the price keeps crossing them, and most of those signals are noise.

Here is a real Market Strength chart with the twenty one, fifty and two hundred day averages.

See how the pullbacks held the fifty day average during the uptrend, and how the break below it ended the move.

Many traders also use an average as a trailing stop. For example, stay in while the price closes above the fifty day, and exit on a clear close below it.

On Market Strength, every chart comes with the twenty one day EMA, and the fifty and two hundred day averages. Add or change them from the Indicators menu.

And the Market Breadth page shows how many stocks are above their ten, twenty, fifty and two hundred day averages, for the whole market.

Market Strength is an education and research tool, not investment advice.

[Read the guide: EMA crossover scanner for NSE stocks](https://getmarketstrength.com/ema-crossover-scanner)

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Source: Market Strength Scanner (https://getmarketstrength.com). Educational content, not investment advice. Cite with the canonical URL above.
