Simple Moving Average SMA
Search Dictionary
Definition of 'Simple Moving Average SMA'
The SMA is the Simple Moving Average.
An SMA is calculated over a number of candles/bars in a chart as the simple average value of that number of bars.
Say, for example, you wanted the SMA for the last 10 days closing prices of the DJIA. You would add together the closing prices for the last 10 days of the DJIA and then divide that by 10. That would give you the 10 day SMA.
You do not need to use just the closing price to calculate this. You can also use the Open, High, Low, and Close or a combination of any of those. Traders sometimes use the High, Low, Close average to produce the SMA. You may see this notation as HLC/3.
An SMA is calculated over a number of candles/bars in a chart as the simple average value of that number of bars.
Say, for example, you wanted the SMA for the last 10 days closing prices of the DJIA. You would add together the closing prices for the last 10 days of the DJIA and then divide that by 10. That would give you the 10 day SMA.
You do not need to use just the closing price to calculate this. You can also use the Open, High, Low, and Close or a combination of any of those. Traders sometimes use the High, Low, Close average to produce the SMA. You may see this notation as HLC/3.
Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.
Is this definition wrong? Let us know by posting to the forum and we will correct it.
Emini Day Trading /
Daily Notes /
Forecast /
Economic Events /
Search /
Terms and Conditions /
Disclaimer /
Books /
Online Books /
Site Map /
Contact /
Privacy Policy /
Links /
About /
Day Trading Forum /
Investment Calculators /
Pivot Point Calculator /
Market Profile Generator /
Fibonacci Calculator /
Mailing List /
Advertise Here /
Articles /
Financial Terms /
Brokers /
Software /
Holidays /
Stock Split Calendar /
Mortgage Calculator /
Donate
Copyright © 2004-2023, MyPivots. All rights reserved.
Copyright © 2004-2023, MyPivots. All rights reserved.