SMA stands for simple moving average. It is an average that is calculated by adding the recent prices and dividing by the number of time periods. The shorter the term, the more quickly the changes of the underlying price will be recorded. Longer term averages are slower.
What does the Moving Average tell you?
The moving average helps you deal with “noise” that can come from short term volatility. By averaging the measures over time, we can find longer term patterns that are not influenced as directly be short term changes.
Further Reading
- Fiscal policy and the current account – link.springer.com [PDF]
- Economic growth, natural resources, and ecological footprints: evidence from Pakistan – link.springer.com [PDF]
- Economic development and banking sector growth in Pakistan – www.tandfonline.com [PDF]
- Ocean and freshwater resources – www.oxfordhandbooks.com [PDF]
- Global, regional, and national cancer incidence, mortality, years of life lost, years lived with disability, and disability-adjusted life-years for 29 cancer groups, 1990 to … – jamanetwork.com [PDF]
- Seed priming with polyamines improves the germination and early seedling growth in fine rice – www.tandfonline.com [PDF]
- The importance of implementing collaborative learning in the English as a second language (ESL) classroom in Malaysia – www.sciencedirect.com [PDF]
