Moving Average

An indicator that smooths price data over a set period to show trend direction.

A moving average averages an asset price over a rolling window, such as 50 or 200 days, to filter out short-term noise. Simple and exponential variants exist; the latter weights recent prices more heavily. Crossovers, like the golden cross, are watched as trend signals.

When the price crossed above its 200-day moving average, traders took it as a bullish sign.