Moving average — the smoothed line
Take the average of the last 50 days' prices and draw it as a
line: that's the 50-day moving average (50 DMA). It smooths out daily zig-zags to show the real
direction. Price above its moving average = buyers in charge lately. Below = sellers in charge.
Your daily cricket scores jump around, but your season average tells the true story.
The moving average is the stock's season average.