Simple Moving Average (SMA)

Simple Moving Average (SMA)

Simple Moving Average (SMA) is one of the core technical indicator used by traders & investors for technical analysis of a stock, index or any securities . Simple Moving Average is calculated by adding recent closing price of a stock and than divide by number of days (time period) . Simple Moving Average (SMA) helps in predicting the future trend & determining if an asset price will continue or reverse a bull or bear trend. So basically its a trend direction indicator . Below is Formula to calculate SMA

SMA A1+A2++An / n

where Anthe price of an asset at period n

nthe number of total periods

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