Moving Average
The average price of a stock over a specific period, smoothing out short-term fluctuations to reveal the underlying trend.
Explained Simply
The two main types are Simple Moving Average (SMA) and Exponential Moving Average (EMA). The 50-day and 200-day moving averages are the most watched. When price crosses above the 50-day MA, it's often seen as bullish. The "golden cross" (50-day crossing above 200-day) and "death cross" (50-day crossing below 200-day) are widely followed trend signals. Moving averages also act as dynamic support and resistance levels.
How Tradewink Uses Moving Average
Moving averages are fundamental to our breakout detection. The AI identifies breakouts above 50-day and 200-day MAs with volume confirmation. MAs are also used as dynamic stop-loss levels — trailing a stop at the 20-day EMA for swing trades or the 50-day SMA for position trades.
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See Moving Average in action
Tradewink uses moving average as part of its AI trading signal pipeline. Start getting signals that use this concept to find real opportunities.