You can use the moving average (MA) with a Plus or Investor subscription. Open a holding and select the “Quote” tab. Under “Chart analytics”, you can turn the lines on and off:
Moving average (50 days)
Moving average (100 days)
Moving average (200 days)
Entry price (your price per share, excluding fees)
You can show as many of them at the same time as you like. The lines are also available on the page of a security you don’t hold in your brokerage account. There, the tab is called “Quote chart”. The entry price isn’t available there. When you move your mouse over the chart, you see the price and the values of the lines for each day. The lines are only available in the web app, not in the Parqet mobile app.
What is the moving average useful for?
Moving averages play a role especially in technical analysis and are among the most commonly used technical indicators. They smooth the price movement of the last 50/100/200 days and reflect short-term or long-term trends.
Among technical analysts, a moving average can act as technical support when the price falls from above to the level of the moving average. If the price hits the line from below, the moving average can be seen as resistance.
Technical analysts speak of a “golden cross” when the 50-day average line crosses the 200-day average line from below. It’s considered a positive signal of a further strengthening uptrend. A “death cross” is the opposite: the 50-day average line falls below the 200-day average line. It’s considered a warning signal of a further strengthening downtrend.
For the price of individual securities, the moving average is seen as technical support (it’s supposed to keep the security from falling further) when the price falls from above to the level of the moving average. If the current price crosses the moving average from below, the value of the moving average is seen as technical resistance.
How is the moving average calculated?
For the MA 200, Parqet takes the last 200 calendar days and calculates the average of the closing prices of all weekdays in this period. Saturdays and Sundays don’t count. 200 calendar days contain about 143 weekdays, so the MA 200 is the average of about 143 closing prices. The same applies to the MA 50 and MA 100 with 50 and 100 calendar days (about 36 and 71 closing prices).
If a public holiday falls on a weekday, the closing price from the previous day counts.
With each new day, the oldest day drops out of the period and the new day is added.
The line only starts once there are at least 50, 100 or 200 calendar days of price history for the security.
That’s why the MA in Parqet can differ from other websites that calculate with 200 trading days.