The simple moving average (SMA) is a literal average of prices over time. There are two main types of moving average. You can enable it as an overlay on the same section of the chart where the stock’s price appears, allowing investors to compare the stock’s current price with its long term trend. Any stock chart that supports technical indicators will have this data. The moving average is represented as a line on the stock’s price chart.
Each day the moving average changes as the formula updates to include the most recent day’s closing price and drop the furthest day’s closing price. In the case of the 200-day moving average, it shows the stock’s average closing price over the past 200 trading days. For example, the 50-day moving average represents the stock’s average price over the past 50 days of trading. As the name suggests, it shows you the stock’s average price over a recent range of trading days. It’s considered one of the most important indicators for investors who are looking to spot mid- and long-term trends. The moving average is a measure of stock price changes over time. Here’s how it works.Ī financial advisor can help you create a financial plan for your investment needs and goals. In the case of the 200-day SMA, it shows you the stock’s average price over the past 200 trading days. The simple moving average, or SMA, is one of the most common pieces of technical data that investors rely on. SmartAsset: What Is the 200-Day Moving Average?
0 kommentar(er)
