|Definition||:||Simple Moving Average|
|Category||:||Business » Finance|
What does SMA mean?
Simple Moving Average (SMA) is the average price of an instrument over a period of time. It is calculated by adding the price of an instrument over a number of time periods and then dividing the sum by the number of time periods. For example, a 30-day simple moving average takes the closing price of the last 30 days and divides it by 30.
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