Moving Average Chart

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DEFINITION of 'Moving Average Chart'

A tool used by technical analysts to track the price movements of a security or commodity. It plots average daily settlement prices over a defined period of time, anywhere from a few days to a couple years.

BREAKING DOWN 'Moving Average Chart'

Usually, when a stock price moves below its 50-100 day moving average, things are not in your favor. The opposite is true for stocks that protrude their moving average.

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