Glossary
Simple moving average (SMA)
The plain average of the last N closing prices, with every close weighted equally.
A simple moving average adds up the most recent N closes and divides by N. Each new period, the oldest close drops out and the newest one is added.
Because every close counts equally, the SMA turns more slowly than an exponential moving average of the same length. A single unusual day affects it twice: once when it enters the window and again when it leaves.
Chartora’s chart desk plots a 50-day simple moving average of daily closes, which gives a reference for whether the latest price is above or below its recent average.
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For education only, not financial advice. Crypto assets and stocks are volatile, and leveraged positions can lose more than the money you put in.