200-day moving average

Definition

An indicator used by traders to determine a stock's closing average over a period of 200 consecutive days. Most traders use this technical indicator to determine trends in the market. In theory, those stocks that continue to close above the 200-day line would be considered healthy, but often those stocks are considered volatile because they usually reverse course and head downward.

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You should try and follow a stocks 200-day moving average so that you know how it has been doing recently.

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If you are thinking about buying a new stock you should see how its 200-day moving average has been doing.

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They analyzed the 200-day moving average of the stocks in which they wished to invest and they saw that the price was about $50 a share.

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