It's a simple average moving line for the past 200 days. It's a mid-long term trend line meaning that if it's broken, the likelihood of a trend up or down is confirmed respectively. It's one of the hardest lines to break, if it's broken and pps keeps closing above it, it confirms a mid to long term trend up. Many run ups usually end at the sma200 line, but this stock has the chance to really break out of it, because the line sits very low at .001, and the strength here with the buying volume so close to it is perfect scenario for a break.