Simple Moving Average financial definition of Simple Moving Average. Simple Moving Average finance term by the Free Online Dictionary.

Simple moving average

The mean, calculated at any time over a past period of fixed length.

Simple Moving Average

The average price of a security calculated by adding closing prices from the most recent trading days (for example, the last 10 days) and dividing by the number of trading days considered (in this case, 10). A simple moving average is easy to calculate and provides a quick look at a security's short-term trend. See also: Exponential moving average.

Simple Moving Average (SMA)

What Does Simple Moving Average (SMA) Mean?

A moving average that is calculated by simply adding the closing price of a security for a number of periods and dividing the total by the number of periods; short-term averages respond quickly to price changes in the underlying securities, whereas long-term averages are slow to react.

Investopedia explains Simple Moving Average (SMA)

Generally, this is the average stock price over a certain period. One should keep in mind that equal weighting is given to each daily price. As shown in the accompanying chart, many traders watch for short-term averages to cross above longer-term averages to signal the beginning of an uptrend. As shown by the arrows, short-term averages (e.g., 15-period SMA) act as levels of support when the price experiences a pullback. Support levels become stronger and more significant as the number of periods used in the calculations increases. The term “moving average” refers to a simple moving average. This is important, especially when one is comparing it with an exponential moving average (EMA).

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Bollinger Band Displaced Moving Average Exponential Moving Average Long-Term Moving Average MA Moving Average Optimization Short-Term Moving Average SMA			This very popular method used to identify the trend is to place a 150 or 200 day simple moving average indicator on your chart. Swing Trading - How to Identify the Trend? by Creztor Tessel / Finance and Investment community amp;nbsp; This has not been the case with EUR thus far which is why it has been able to use a simple moving average for support. EURUSD and Elasticity by International Business Times - US ed. We now add a 62 period simple moving average - or sma. Forex Trading Signals by Burt Schwartz / Business community			Significant Order Significant Order Imbalance Sigtdokument silent partner silent second Silicon Valley Siliconaires Silo Silver Silver Certificate Silver Krugerrand Silver Parachute Silver Parachutes Simbolo de la accion SIMEX SIMPLE Simple Compound Growth Method simple interest Simple Interest Biweekly Mortgage Simple Interest Mortgage SIMPLE IRA Simple Linear Regression Simple Linear Trend Model simple loss payable clause simple majority Simple Moving Average Simple Prospect Simple Rate of Return SIMPLE Retirement Plan Simple Trust Simplified Employee Pension Simplified Employee Pension Plan Simplified Method simulate Simulation Simultaneous Death Act simultaneous death clause Simultaneous Transaction Sin calificacion Sin cambio Sin cupon Sin derechos de suscripcion Sin deudas Sin dividendo Sin fines de lucro Sin fondos Sin Tax Sin valor Sin warrants Sindicato Sindicato de subscricao			Simple matter of software Simple Maximum Likelihood simple meaning Simple Media Access Control Protocol Simple Media-Integrating Resource Creator Simple Medical Data Protocol simple meningitis Simple Message Brokering Library Simple Message Passing Library Simple Message Queue Protocol Simple Message Service Simple Messaging Application Programming Interface simple metal simple microscope simple microscope simple microscope Simple MIME Exchange Protocol Simple Minded People simple mindedness Simple Minds Simple Modeling and Processing Language Simple Models of Complex Networks Research Cluster Simple Modular Architecture Research Tool Simple module Simple Monitoring Evaluating and Logging Tool Simple Moving Average Simple Moving Averages Simple Multi-Attribute Rating Technique Simple Multi-Visit Simple Multicast Simple Multicast Network simple multicast protocol Simple Multicast Routing Protocol Simple Multimedia Description Protocol Simple Multiplexing Protocol Simple Music format Simple Net Art Diagram Simple Network Administration Simple Network Automated Provisioning Simple Network for Atomic Communication Simple Network Magic Corporation Simple Network Mail Transmission Protocol Simple Network Management Executive Simple Network Management Protocol Simple Network Management Protocol Simple Network Management Protocol Console Simple Network Management Protocol Daemon Simple Network Management Protocol version 2 Simple Network Management Protocol, Version 2 Simple Network Management System Simple Network Markup Language