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Simple Moving Average

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Financial Dictionary

Simple Moving Average - SMA

A simple, or arithmetic, moving average is 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.

Investopedia Commentary

In other words, it's the average stock price over a period of time. Keep in mind that equal weighting is given to each daily price.

Related Links

Basics of Moving Averages
Moving Averages Tutorial
Introduction To Technical Analysis

See also: Arithmetic Mean Average, Exponential Moving Average - EMA, Moving Average, Technical Analysis

Also spelled: Arithmetic Mean Average, SAM, AMASMA

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