What is SMA (Simple Moving Average) ?

[Henow1969]

Simple moving averages are the averages of a range of values, usually closing prices, divided by the number of periods within that range. Moving averages accurately reflect stock prices. In addition to being one of the easiest technical indicators to calculate, the simple moving average (SMA) is also one of the most important.

 

[sharabela]

SMA or Simple Moving Average is one of the most widely used indicators. It is consistent. There are so many strategies based on SMA. Out of them, 3 SMA strategy is the one, which I like most. Using 3 Moving Averages (50, 100 and 200) on the same chart to determine the trend and trade with the trend is the main idea of this strategy.