Tag: Simple Moving Average

Simple Moving Average (SMA) is a technical indicator used to smooth out price data over a set period of time. SMA helps investors analyze stock trends, identify support and resistance levels, and determine potential entry and exit points. SMA is calculated by adding the closing price of a stock over a certain period and then dividing the total by the number of periods. The resulting average is used to create a line that follows the stock’s price movements. Using a longer period of time helps to filter out any day-to-day noise in the stock’s price, allowing for more accurate trend analysis. SMA can be a useful tool for investors seeking to identify upward or downward trends in their investments.