Simple Moving Average Calculator
6 comments
This calculator helps you compute the Simple Moving Average (SMA), a technical analysis tool that smooths out price data by calculating the average of a security’s closing prices over a specific period. It's widely used by traders to identify trends and signals.
SMA (Trend Smoothing) Tool
Simple Moving Average Formula
$$\text{SMA} = \frac{P_1 + P_2 + \dots + P_n}{n}$$
Where:
- $$P$$ = Price at each interval
- $$n$$ = Number of periods
Explanation:
The Simple Moving Average takes the sum of recent prices and divides by the number of periods. It smooths out short-term fluctuations and highlights longer-term trends.
SMA is a foundational tool in trading and market analysis. It helps with:
- Identifying upward/downward trends
- Filtering out “market noise”
- Confirming support and resistance levels
Example:
- Period: 5 days
- Prices: 100, 102, 101, 98, 99
- SMA = (100 + 102 + 101 + 98 + 99) / 5 = 100
Use Cases:
- Stock and crypto trading
- Algorithmic and manual trading systems
- Market timing strategies
Good work your guys
Thank you for the online calculators. Problems:
Using the moving averages calculator I failed to see how to change the period from days to months. My need was to calculate moving average over 11 months and not days.
I could find no way of registering an account even though there is a log in page. How to register/sign up????
Thank you
Robert
How to put in the days? Doesn’t make sense