Question Details

	Username: Andrew Rating: Asked to: Tom Burke Date Created: 13 Jun 2017
Category	17
Tag	Financial
Question	What is a 'Simple Moving Average - SMA'?

Advice from Guru

Hello Andrew,

A simple moving average (SMA) is an arithmetic moving average calculated by adding the closing price of the security for a number of time periods and then dividing this total by the number of time periods.

Many traders watch for short-term averages to cross above longer-term averages to signal the beginning of an uptrend. Short-term averages can act as levels of support when the price experiences a pullback.

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