50 Day Moving Averages

50 MA stands for 50 day moving average -- a term every investor should know and understand.

In a nutshell, the 50 day moving average is just what it sounds like: the average movement of a stock over the past 50 days.

There are two common types of moving averages to be aware of:

1. The SMA or Simple Moving Average. The SMA will have a time lag.
2. The EMA or Exponential Moving Average. The EMA will capture change faster.

Because the 50 day moving average has a longer duration, it is typically associated with the SMA or simple moving average. Obviously, it will not provide as precise a measure or the ability to capture quick changes. The EMA or Exponential Moving Average is a much more precise measure used to capture quick changes and chart support and resistance levels.