Charts & technicals

What is Moving average (SMA and EMA)?

Also called: SMA, EMA, DMA, Simple moving average, Exponential moving average

Hinglish mein padhein: Moving average kya hota hai?

A moving average is the average closing price over the last N days, updated daily. It smooths noise to show the trend.

A simple moving average (SMA) weights every day equally; an exponential moving average (EMA) gives more weight to recent prices, so it reacts faster.

The 50-day and 200-day averages are the most watched. Price above a rising 200-day average is a common definition of a long-term uptrend.

Example

If the last five closes are 100, 102, 101, 104 and 103, the 5-day SMA is 102.

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