A moving average smooths out price data to show the underlying trend direction.
Types
- SMA (Simple Moving Average): equal weight to all days
- EMA (Exponential Moving Average): more weight to recent days
Key Moving Averages
| Period | Use | Signal |
| 20-day | Short-term trend | Active trader's tool |
| 50-day | Medium-term trend | Institutional benchmark |
| 200-day | Long-term trend | Bull/bear dividing line |
Golden Cross and Death Cross
- Golden Cross: 50-day MA crosses above 200-day MA → bullish signal
- Death Cross: 50-day crosses below 200-day → bearish signal
These signals are widely watched in all Asian markets, particularly in Japan where technical analysis is extremely popular.