The 200-day moving average is one of the most used and simple tools of technical analysis. It is used to identify trends, with the main objective of indicating buy or sell signals.

In the simple calculation, the average of a value of the past two hundred days is calculated in each case and the results are connected. The resulting line is combined with the current stock market prices. If the current price breaks through the two hundred day line from the bottom to the top, this is considered a buy signal. If, on the other hand, it pushes through the current course from above downwards, as a sell signal.

Critics criticize in particular the familiarity of the indicator, if it is used by many, it can lead to false signals.