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The moving averages on the site are simple moving averages that are calculated daily, weekly or monthly — depending on the Time Period you've selected, such as 1 Year (daily) or 3 Years (weekly).
Moving averages smoothen out the price fluctuations of a security or index by charting its average closing value for as few as 10 days/weeks/months or as many as 200 days/weeks/months. A 10-day moving average, for example, is the average closing price of the security for the past 10 trading days divided by 10, plotted on a chart.
As many as two moving averages can be plotted on the same chart, along with its security or index, enabling investors to discern the price trend. If a security is trading above its 50-day moving average, then investors are more bullish (positive) about that security now than they have been, on average, during the last 50 trading days. Similarly, if the security is trading below its 50-day moving average, then investors are more bearish (negative) about that security now than they have been, on average, during the last 50 trading days.
Intersection points are also important when viewing moving averages. If a security crosses its 50-day moving average trending downward, for example, this could be interpreted as a signal to sell. Similarly, if the security crosses its 50-day moving average trending upward, this could be interpreted as a signal to buy.
Ten-day and 20-day moving averages are considered useful for pinpointing very short-term price trends. Fifty-day averages are considered useful for showing intermediate-term price trends. And 100-day and 200-day moving averages are considered useful for interpreting longer-term price trends.