Simple Moving Average

Finance

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

Enter Data (separate by comma,) Example: 2,3,4,5,6
Simple Moving Average (SMA) =
 
 
 

Formula of Simple Moving Average

sma

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 3rd day to 8th 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

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