The 50-day Simple Moving Average (50 SMA) is a technical indicator that observes the average closing prices for an individual security over the previous 50 days.

The 50-day SMA provides investors insights into the short term trends of a stock. Like the 200-day SMA traders consider a stock price that is trading at or above its 50 DMA in an uptrend. However, if a stock closes below its 50-day SMA could possible indicate the beginning of a down trend.