Simple Moving Average Meaning English

Simple Moving Average Meaning

A Simple Moving Average (SMA) is a statistical tool used in financial analysis, calculated by averaging a security’s price over a specific time period. This average is constantly updated, smoothing out price data to identify trends in markets more clearly and reduce noise.

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What Is Simple Moving Average In Stock Market?

In the stock market, a Simple Moving Average (SMA) is an indicator that calculates the average price of a stock over a specified number of periods. It helps smooth out price fluctuations to reveal underlying trends, aiding in technical analysis for investment decisions.

The Simple Moving Average (SMA) in stock trading is calculated by adding the closing prices of