^GSPC$7,423.20+0.56%^IXIC$25,009.60+1.04%^DJI$42,502.91-0.16%^VIX$27.32+2.05%^STOXX50E$67.27+0.73%BTC-USD$79,600.39-1.10%ETH-USD$2,257.18-0.75%SOL-USD$90.98-3.49%AAPL$298.95+1.41%MSFT$405.09-0.66%NVDA$225.86+2.30%TSLA$445.21+2.71%META$616.61+2.26%GOOGL$402.64+3.95%AMZN$270.15+1.63%AMD$445.40-0.64%EURUSD$1.1709-0.27%GC$4,686.94-0.60%CL$101.27-1.72%^GSPC$7,423.20+0.56%^IXIC$25,009.60+1.04%^DJI$42,502.91-0.16%^VIX$27.32+2.05%^STOXX50E$67.27+0.73%BTC-USD$79,600.39-1.10%ETH-USD$2,257.18-0.75%SOL-USD$90.98-3.49%AAPL$298.95+1.41%MSFT$405.09-0.66%NVDA$225.86+2.30%TSLA$445.21+2.71%META$616.61+2.26%GOOGL$402.64+3.95%AMZN$270.15+1.63%AMD$445.40-0.64%EURUSD$1.1709-0.27%GC$4,686.94-0.60%CL$101.27-1.72%
RockstarMarkets
All glossary
Technical analysis

Moving average

Average price over a defined period; smooths noise to show trend.

What it means

A moving average plots the average closing price over the last N periods. SMA weights all periods equally; EMA weights recent periods more heavily. Common periods: 20, 50, 100, 200.

Why it matters

The 200-day moving average is the most-watched single line in finance. Above it = uptrend regime, below it = downtrend regime. Index funds, CTAs, and risk-parity strategies all key off it. Self-reinforcing.

How to use it

Use the 200d as a regime filter (long-only above; flat or hedged below). Use the 20d for short-term trend. Avoid trading exclusively off MA crosses - they lag.

Take it further

Want a worked example or a deeper dive? Ask Rocky how this concept applies to your specific watchlist or trade idea.

Ask Rocky