200-day moving average
200 DMA · 200-day MA
In short
#TradingThe 200-day moving average is the average closing price of the last 200 trading days, redrawn each day. It is the most widely watched long-term trend line in markets.
Why it matters
Its importance is largely self-fulfilling: so many funds and traders reference the same line that price often reacts around it. Analysts use it as shorthand for regime. Above it, the long-term trend is treated as intact; below it, as broken. It lags by design and will never call a turn early.
Example
A stock trades at $180 while its 200-day sits at $164. Commentary describes it as being in a long-term uptrend with the 200-day as the level bulls would defend on a deeper pullback.
Frequently asked
Is the 200-day moving average actually support?
It has no mechanical power, but it is watched by enough participants that orders cluster around it, which can produce real reactions. Treat it as a crowded reference level rather than a physical floor.
Simple or exponential, which do analysts mean?
An unqualified reference usually means the simple 200-day average. The exponential version weights recent prices more heavily and turns slightly faster, and is normally stated explicitly when used.