Simple Moving Average

The Simple Moving Average is an unweighted mean of the previous n bars. For example, a 10-day moving average of closing price is the mean of the previous 10 days’ closing prices. The user may change the input (close), period length and shift number. This indicator’s definition is further expressed in the condensed code given in the calculation below.

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SMA

How To Trade Using Simple Moving Average

The Simple Moving Average is a lagging trend indicator and may be used in conjuction with other studies. No trading signals are calculated.

How To Access in MotiveWave

Go to the top menu, choose Study>Moving Average>Simple Moving Average

or go to the top menu, choose Add Study, start typing in this study name until you see it appear in the list, click on the study name, click OK.

Important Disclaimer: The information provided on this page is strictly for informational purposes and is not to be construed as advice or solicitation to buy or sell any security. Please see our Risk Disclosure and Performance Disclaimer Statement.

Calculation

//input = price, user defined, default is close
//period = user defined, default is 20
//shift = user defined, default is 0
//sma = simple moving average
//index = current bar number

Plot: sma = sma(index+shift, input, period);