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SMA

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Introduction

The SMA, or Simple Moving Average is a running indicator that is the last n periods of trading.

Construction

Given

  • p = a number of periods
  • i = a period
  • SMA (i) = sum from j = i-p to i price (i)
  • or
  • SMA (period) = SMA (period.previous) + period.close/n - period.previous(n+1)/n

Related Terms

EMA

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