| A simple moving average is a statistical calculation that involves taking the average price of a security over a set period, then plotting that average as a line on a chart. The most common moving averages are the 50-day, 100-day, and 200-day. These averages smooth out price action and help identify trends and trend reversals. A price crossover occurs when a stock's price crosses above or below a moving average line on a chart. A bullish crossover occurs when the price crosses above the moving average and is seen as a signal of a potential uptrend. Conversely, a bearish crossover occurs when the price crosses below the moving average and is seen as a signal of a possible downtrend. |
