Description

Simple Moving Average identifies trends by eliminating noise. SMA can be calculated by adding all the values over a period of time and dividing the total by the number of elements in the same period.


Formula

smaArray[] = SUM(closeArray)/period where closeArray is period-sized array of close values.


Interpretation

Simple Moving Average is primarily used to identify trend direction by averaging values and thus eliminating noise.

inteliCharts - Simple Moving Average
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