Simple Moving Average

Simple Moving average is a statistical concept. It is used in calculation of, average of closing price for a time period. SMA is calculated by, adding the closing price of time period and then divide it by number of time period.

Calculator of Simple Moving Average

Formula of Simple Moving Average

where,

• n = Number of Data
• d = Moving Average
• Days M = Data

Example of Simple Moving Average

Calculate the Simple moving average, when time period is 3 and the closing prices are 25, 85, 65, 45, 95, 75, 15, 35

Given

Closing Prices = 25, 85, 65, 45, 95, 75, 15, 35
Time Period = 3 days

Solution of Simple Moving Average

Calculation of SMA from 3^rd day to 8^th day, in time period of 3 days.

Average

A₃ = (25 + 85 + 65) / 3
A₄ = (85 + 65 + 45) / 3
A₅ = (65 + 45 + 95) / 3
A₆ = (45 + 95 + 75) / 3
A₇ = (95 + 75 + 15) / 3
A₈ = (75 + 15 + 35) / 3

Result

Average

A₃ = 58.3333
A₄ = 65
A₅ = 68.3333
A₆ = 71.6667
A₇ = 61.6667
A₈ = 41.6667