What is simple moving average - Definition and Meaning

Simple Moving Average :

Simple Moving average is used to calculate average of closing price for a time period statistically. By adding the closing price of time period and then divide it by number of time period the simple moving average is calculated.

Formula :

Simple Moving Average formula

Example :

Enter Datas = 3,4,5,6 Simple moving average day = 2 Average A2 = (3+4) / 2 Average A3 = (4+5) / 2 Average A4 = (5+6) / 2 Average A2 = 3.5 Average A3 = 4.5 Average A4 = 5.5

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