Simple Moving Average
Simple Moving Average
the simple moving average is formed by calculating the average price of a security over a particular number of periods.
While it is possible to create moving averages from the Open, the High and the Low data points, most moving averages are created using the closing price.
For
example: a 4-day simple moving average is calculated by adding the
closing prices for the last 4 days and dividing the total by 4.
11+ 12 + 13 + 14 = 50
(50 / 4) = 12.5
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