Moving averages

The average closing price over a set number of days, drawn as a smooth line (for example 20 or 50 days).

What it means

Smooths out noise to show the direction of the trend.

What to watch

Price above the 50- and 200-day averages suggests an uptrend.

How Compass Alpha uses it

Radar checks whether an asset is above its 20- and 50-day averages.