When I first started looking at candlestick charts, I constantly saw some lines with labels like MA50 and MA200. I didn’t understand for a long time what they actually were and why they were needed. Then I figured it out, and now I want to share with those who are also confused.

These are moving averages, or as they are called in English — Moving Averages. Simply put, what is an MA in trading — it’s a tool that shows the average price of an asset over a certain number of candles or days. It sounds complicated, but in reality, it’s quite logical.

Look: MA50 calculates the average price of the last 50 candles, MA200 — over 200 candles, MA20 — over 20. On a daily chart, this is usually 20 days. The essence of MA is that it helps filter out the excess noise on the chart and see the real trend, rather than reacting to every price jump.

How does this work in practice? If the asset’s price is above the moving average — it’s likely an uptrend. If below — a downtrend. And when different MAs cross each other, it often gives signals to enter or exit a position. But what’s important to remember: moving averages do not predict the future. They simply show what is already happening in the market.

I would recommend beginners start specifically with MA50 and MA200 — they are the most proven and popular. But the main thing — don’t rely on them as the only signal. Use MAs as a supplement to your analysis, combine them with other tools. And definitely practice on a demo account to understand how all this works in reality. When you see how the lines move and cross during live trading, everything becomes much clearer.