Investing

Moving Average Calculator (SMA/EMA)

Moving Average Calculator (SMA)

Calculate the Simple Moving Average from a series of prices.

Count: 5 days

Simple Moving Average (5-SMA)

102.80

What to do next

Based on your Moving Average Calculator (SMA/EMA), here are the tools you should try next:

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SMA & EMA Price Averaging Formulas

SMA = ∑ Prices / N; EMA_t = Price_t * multiplier + EMA_t-1 * (1 - multiplier)

Calculates moving price averages over N days to smooth out price noise and track technical trends.

Worked Example: 5-day prices: 100, 105, 110, 108, 112

5-day Simple Moving Average (SMA): **107.0**.

Moving Averages: Smoothing out stock price trends over time

Meera used moving averages to identify trends. She plotted a 50-day Simple Moving Average (SMA) and a 200-day SMA on a stock chart to identify trend directions.

When the 50-day SMA crossed above the 200-day SMA, she recognized the bullish 'Golden Cross' pattern and entered a long position, riding the uptrend.

Moving averages calculate average prices over specific periods, helping traders filter out daily noise and identify trend direction.

Use Exponential Moving Averages (EMA) for short-term trading as they react faster to recent price changes than standard SMAs.

Frequently Asked Questions

What is the difference between SMA and EMA?

Simple Moving Average (SMA) gives equal weight to all days in the period. Exponential Moving Average (EMA) gives more weight to recent prices, making it react faster to trend changes.

What is a Golden Cross?

A Golden Cross occurs when a short-term moving average (like the 50-day) crosses above a long-term moving average (like the 200-day), signaling a major bullish trend reversal.

Are moving averages leading or lagging indicators?

Moving averages are lagging indicators. They confirm established trends but cannot predict tops or bottoms before they happen.

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