# 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

A_{3} = (25 + 85 + 65) / 3

A_{4} = (85 + 65 + 45) / 3

A_{5} = (65 + 45 + 95) / 3

A_{6} = (45 + 95 + 75) / 3

A_{7} = (95 + 75 + 15) / 3

A_{8} = (75 + 15 + 35) / 3

#### Result

Average

A_{3} = 58.3333

A_{4} = 65

A_{5} = 68.3333

A_{6} = 71.6667

A_{7} = 61.6667

A_{8} = 41.6667