On Wall Street, even the strongest uptrends and bull markets eventually succumb to gravity and must pullback. Rather than chasing highs like most retail investors do, "smart", big-money institutional investors often act as liquidity providers during market pullbacks and buy the dip. Rather than arbitrarily buying pullbacks, these institutional investors use moving averages to smooth out price. The 50-day simple moving average is the most optimal moving average to gauge the intermediate-term trend.