What Is the 150-Day Moving Average?
The MA150 (150-day moving average) is a line on a stock chart that shows the average closing price over the last 150 trading days. As each new day passes, the oldest day drops off and the newest day is added, so the average “moves” with time.
It belongs to the family of simple moving averages (SMA), which give equal weight to each day’s close. The 150-day period spans approximately 7 months of trading activity, making it an intermediate-to-long-term trend indicator.
Why 150 Days?
The 150-day period was popularized by Mark Minervini, a renowned stock trader and author of Trade Like a Stock Market Wizard. In his methodology (known as SEPA — Specific Entry Point Analysis), the MA150 acts as a key filter: he only considers buying stocks that are trading above their 150-day moving average.
The 150-day period sits between the commonly used 100-day and 200-day averages. It’s long enough to filter out noise but responsive enough to catch trend changes before the slower MA200.
How to Read the MA150
- Price above MA150 — The stock is in an uptrend. This is a bullish environment where buying opportunities are favored.
- Price below MA150 — The stock is in a downtrend. This is a bearish environment where caution is warranted.
- Price near MA150 — The stock is at a decision point. If the trend is up, the MA150 often acts as support (price bounces off it). If the trend is down, it acts as resistance (price gets rejected).
- MA150 slope rising — The trend is strengthening. Higher slopes indicate stronger momentum.
- MA150 slope falling — The trend is weakening or reversing.
MA150 as Dynamic Support and Resistance
One of the most powerful uses of the MA150 is as a dynamic support/resistance level. Unlike fixed horizontal support lines, the MA150 moves with the price trend, creating a “moving floor” (in uptrends) or “moving ceiling” (in downtrends) that the price often respects.
When a stock in an uptrend pulls back to its MA150 and bounces, it’s a classic buy signal. The stock is essentially “on sale” — temporarily discounted within a larger uptrend.
How Scanance Uses the MA150
Scanance calculates the MA150 for every stock in 10 global markets and identifies two types of signals:
MA150 Buy Signals
Triggered when the stock’s price is within 1% above the MA150. This means the price has pulled back to the moving average support zone. The scanner also considers the MA150 slope — an upward-sloping MA150 confirms that the underlying trend is still bullish.
MA150 Short Signals
Triggered when the stock’s price is within 1% below the MA150. This means the price has rallied up to the moving average resistance zone in a downtrend. A downward-sloping MA150 confirms bearish momentum.
MA150 vs. MA200: Which Should You Use?
Both are valuable. The MA150 reacts faster to price changes because it averages fewer days. The MA200 is smoother and more widely tracked by institutional investors. Here’s how they compare:
- MA150 — Better for swing traders who want earlier signals. More responsive to trend changes.
- MA200 — Better for position traders and investors. Considered the “line in the sand” by Wall Street.
- Both together — When price is near both averages, the signal is strongest. Scanance tracks both independently so you can see confluence.
Limitations of the MA150
- Lagging indicator — Moving averages are based on past data. They confirm trends rather than predict them.
- Whipsaws in choppy markets — In sideways markets, the price may cross above and below the MA150 repeatedly, generating false signals.
- Not a standalone tool — The MA150 works best when combined with other indicators (RSI, MACD) for confirmation.