A simple moving average (SMA) is an arithmetic moving average calculated by adding recent closing prices and then dividing that by the number of periods.
 | | Simple Moving Average - SMA | | A simple moving average (SMA) is an arithmetic moving average calculated by adding recent closing prices and then dividing that by the number of time periods in the calculation average. A simple, or arithmetic, moving average that is calculated by adding the closing price of the security for a number of time periods and then dividing this total by that same number of periods. Short-term averages respond quickly to changes in the price of the underlying, while long-term averages are slow to react. | | Read More » | | Related to "Simple Moving Average - SMA" | | | | Technical Analysis | | Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume. | | Read More » | | | Moving Average (MA) | | A moving average is a technical analysis indicator that helps smooth out price action by filtering out the "noise" from random price fluctuations. | | Read More » | | |  | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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