When a stock trades far above its 200-day average
A price well above its 200-day average means a stock has risen fast compared with its own last ten months. Here, “far above” means more than 30% above.
What it measures
The 200-day moving average is the average closing price over roughly the last ten months. It moves slowly, so the gap between the price and the average shows how far the stock has run ahead of its longer trend.
How it is calculated
Add up the last 200 closing prices and divide by 200. The gap is the price divided by that average, minus one. A stock at ₹130 with a 200-day average of ₹100 is 30% above it.
What happened next, in Indian stocks
These figures come from Sensifty’s monthly research and load here.
Why the same gap means different things
For a steady utility, 30% above its average is extraordinary. For a volatile small company, it can be an ordinary month. Sensifty measures the gap against each stock’s own history of gaps for that reason, so a stretch means the same thing whichever stock you look at.
What it does not tell you
A wide gap says the price has moved fast. It does not say whether the business has changed enough to justify it.
Related
Sensifty measures each of your stocks against its own history, and tells you once when a stretch cools off. Add to Chrome
Figures describe the past, among the 500 most traded NSE stocks at each date. They are not a forecast or a recommendation.