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Moving Averages

Alpha Charts include four widely used moving averages that form the foundation of modern technical analysis: EMA 20, MA 50, MA 100, and MA 200.

These aren’t arbitrary selections. Each of these averages is closely tracked by institutional and retail traders alike, making them self-reinforcing and highly reactive across timeframes. When millions of participants view the same levels, price tends to respect them — either as bounce zones, trend confirmations, or reversal signals.

Moving averages also contribute directly to MarketAlpha’s AI strategy overlays, risk calculations, and structural support/resistance metrics.

EMA 20​

The Exponential Moving Average (EMA) with a 20-day period is a fast-moving indicator that reacts quickly to price changes. Because it gives more weight to recent data, it helps:

  • Identify short-term momentum
  • Confirm shallow pullbacks during uptrends
  • Spot breakdowns when price decisively cuts below

This is a favorite for swing traders and short-term trend followers, especially when paired with candle structure or volume surges.

MA 50​

The 50-day Simple Moving Average (SMA) is one of the most tracked levels on both daily and weekly charts. It represents a medium-term trend baseline and is often used as:

  • A dynamic support/resistance level
  • A confirmation line for intermediate breakouts
  • A signal of trend health when tested and held

Many institutional algorithms monitor the MA 50, and it frequently aligns with pivot zones or consolidation ranges.

MA 100​

The 100-day SMA serves as a bridge between medium and long-term trend structure. While not as universally cited as the 50 or 200, it still offers:

  • Smoother, less reactive trend guidance
  • Context for deeper pullbacks or mean reversion setups
  • Support identification in broad channel movements

It’s especially useful for spotting basing patterns or the early phases of new long-term trend formations.

MA 200​

The 200-day SMA is a critical institutional benchmark — often called the "line in the sand" between bullish and bearish market conditions. It reflects:

  • Long-term trend direction
  • Investor sentiment on a macro scale
  • Structural support in major uptrends

When price breaks below the MA 200, it often triggers wider reevaluation of risk. Conversely, reclaiming it after an extended downturn can be a powerful signal of recovery.

Smart Filtering​

MarketAlpha allows you to filter and screen tickers based on their relationship to moving averages using three distinct layers of logic:

  • Percentage distance from each MA — how far price is from the EMA 20, MA 50, MA 100, or MA 200 in percentage terms. This helps identify extended moves, bounce zones, and reversion setups.
  • Relative positioning — the order of moving averages relative to each other (e.g. MA 50 above MA 200, or EMA 20 crossing below MA 100). These alignments can signal bullish or bearish structure depending on the trend stack.
  • Proximity classification — whether price is considered close to a given moving average. These conditions are determined using a proprietary proximity model that adapts to volatility and chart context.

This multi-layered system allows for precise and meaningful filtering — whether you’re looking for pullbacks into the 50-day SMA, clean breakouts above long-term structure, or stacked momentum conditions supported by average alignment.

All moving averages in Alpha Charts are used not just for visual guidance but also as inputs into risk/reward modeling, support/resistance metrics, and trend-based filtering — giving them functional value across both analysis and strategy.