Business and Personal Finance Dictionary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

• 50, 200-DAY AVERAGE PRICE
  
  The price of a company's stock, averaged over the latest 50-day or 200-day period. These are moving averages, which means they change every day as they are updated. Technical analysts often use 50-day and 200-day averages to help decide when they will buy or sell a stock. When these lines cross, it indicates a change away from trend. The 50-day moving average is considered an appropriate gauge for intermediate-term trading, while investors tend to prefer the 200-day average for long-term trend analysis. If the price rises above the averages, it is an indicator that the stock is on the move. If the price drops below the averages, it may spell trouble for the stock.
  
  Back