how are simple moving averages used in technical analysis 
traders use simple moving averages smas to chart the long term trajectory of a stock or other security while ignoring the noise of day to day price movements this allows traders to compare medium and long term trends over a larger time horizon for example if the 50 day sma of a security falls below its 200 day sma this is usually interpreted as a bearish death cross pattern and a signal of further declines the opposite pattern the golden cross indicates potential for a market rally 