DMA-Day Moving Average

Day Moving Average

What it is:

A Day Moving Average is a moving average calculated across daily closing prices over a specific number of trading days.

The key DMAs we watch:

• 20-DMA (Short-Term Momentum): Our gauge for immediate trend strength. When price holds above a rising 20-day, short-term buyers are in control. A break below often warns of a near-term pullback or pause.
• 50-DMA (Intermediate Trend & Swing Support): The benchmark for multi-week momentum and institutional interest. We frequently look for low-risk pullback entries or confirmations of trade setups as price tests this level.
• 200-DMA (The Big-Picture Line in the Sand): The primary boundary between a healthy, long-term bull market and a cyclical bear market. Above the 200-day, dips are generally buying opportunities; below it, defense comes first.