Technical
50 and 200-day moving averages
MA 50/200
What it is
Moving averages smooth daily fluctuations to reveal the underlying trend. The MA50 captures short-medium term; the MA200 captures long-term.
How to read it
When the MA50 crosses above the MA200, it's a "golden cross" — a strong bullish signal. The reverse is a "death cross" — a bearish reversal signal. The current price relative to MA200 also matters: above = healthy trend, below = caution.
Common reference points
- Strong uptrendMA50 > MA200, price > MA200
- Fragile uptrendMA50 > MA200, price < MA200
- DowntrendMA50 < MA200
Orders of magnitude, not a rule: the same number does not mean the same thing from one sector to the next.
What it does not tell you
Like all technical indicators, lagging. More useful in trending markets than in directionless ones. Says nothing about valuation.
Other measures — Technical
Educational content. Polaris is not a registered investment adviser and makes no recommendation.