Used in technical analysis. The simple moving average is a trend-following indicator. A moving average is created by adding and then averaging a set of data over a constant number of periods. Calculations usually look at closing prices but can also use High and Lows or a High-Low-Close combination. A bullish signal exists when prices rise above the simple moving average and the moving average turns up. A bearish signal exists when the prices fall below the simple moving average and the moving average turns down.

A moving average calculation in which all past periods considered have equal weight and are not factored or smoothed.

The mean value, as calculated over a rolling previous period of fixed length.

A series of averaged price data plotted on a currency chart. A simple moving average can be constructed by taking the closing prices for the number of sequential price bars that you want to analyse, adding those prices together and dividing that sum by the number of price bars. This technical indicator makes it easier to see the general direction of a trend underlying market action.

an average of data calculated over a period of time

an indicator that calculates the average price of a security over a specified number of periods

The average price of a security or currency over a specified time period used to spot pricing trends by smoothing out the large fluctuations. The Simple variety assigns equal weight to each data point in the period.

A method of smoothing price data in which prices are added together and then averaged. It is a "moving" average because the average moves. As new price data is added, the oldest data is dropped.

The mean, calculated at any time over a past period of fixed length.

A simple, or arithmetic moving average is calculated by adding the closing price of the security or futures market for a number of time periods, then dividing this total by the number of time periods. In other words, it's the average stock price over a period of time. Unlike the Exponential Moving Average, this type of moving average gives equal weight to each daily price.

See on: Wikipedia Investopedia A simple, or arithmetic, moving average that 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. Short-term averages respond quickly to changes in the price of the underlying, while long-term averages are slow to react.