Articles

Simple Moving Average

Posted By: TradersLog

A Simple Moving Average (SMA) is calculated by adding the closing price of a security for a number of time periods and then dividing this total by the number of time periods. This illustrates the average price of the issue over a set number of periods. The moving average smooths the data series and makes it easier to spot trends. See also: Exponential Moving Average

Related Articles: Understanding Moving Averages

Chart courtesy of Prophet Financial Systems (www.prophet.net)

Enjoying the Simple Moving Average information? Sign up for the newsletter today and access even more top quality trading related content! Learn More

No Comments

Categories Articles, Technical Analysis | Tags:

By submitting a comment here you grant Traders Log a perpetual license to reproduce your words and name/web site in attribution. Inappropriate or irrelevant comments will be removed at an admin's discretion.

Definitions

Trading Articles

Broker Reviews

Trading Software Reviews

Trader Tools

Contact Us

Privacy Policy

The information contained on TradersLog.com is believed to be accurate but is not guaranteed. Market data is furnished on an exchange delayed basis by Barchart.com. Data transmission or omissions shall not be made the basis for any claim, demand or cause for action. No information on the site, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any futures or options contracts. TradersLog.com is not a broker, nor does it have an affiliation with any broker.

The risk of loss in trading securities, options, futures and forex can be substantial. The comments and reviews posted on TradersLog.com reflect the opinions of our readers. No warranty can be given as to the accuracy or the completeness of the comments and reviews posted by users or as to the results obtained by those using such information.

Categories

Articles

Posted By: TradersLog

Leave a Reply