Understanding the terms 50 DMA and 100 DMA

Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    Moving averages are important technical indicators that every investor should know. A breakdown of a stock price below these levels is seen as a weakish trend for a stock or the index as the case maybe.

    Understanding the terms 50 DMA and 100 DMA
    How do 50 DMA AND 100 DMA Work?

    DMA is also called daily moving averages. So, a 50 DMA means the average closing price of a stock for the last 50 days. On the other hand a 100 DMA means the daily average price for the last 100 days.

    Both these are important indicators when determining the movement of a stock. Technical analysts use this very frequently.

    Fundamental analysts on the other hand care very little for the moving averages. Their stocks picks are more based on the fundamental analysis of a stock more than anything else.

    They might tend to ignore technical analysis altogether.

    GoodReturns.in

    Read more about: dma
    Story first published: Saturday, May 23, 2015, 10:42 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'
    India's LARGEST EVER political poll. Have you participated yet?

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more