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The simple moving average (SMA) is a technical analysis indicator used to identify trends in stock prices by averaging the closing prices of a security over a specific period of time.
Investors, traders, and analysts may use the SMA to help make investment decisions based on trends in stock prices.
To calculate the SMA, add up the closing prices of a security for a specific number of days and then divide by the number of days.
The purpose of the SMA is to smooth out short-term price fluctuations and identify trends in stock prices over a longer period of time.
The SMA requires reporting the closing prices of a security over a specified number of days to calculate the moving average.
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