Simple Moving Average (SMA)

Definition

The SMA calculates the average price over a specific number of periods, giving equal weight to each price point. SMA 200 is widely watched as a long-term trend indicator. When price crosses above the SMA, it may signal an uptrend; below signals a downtrend.

Related Terms

Moving Average (MA)Exponential Moving Average (EMA)

More Technical Analysis Terms

Technical Analysis Fundamental Analysis Support and Resistance Trend Line Trend Moving Average (MA)Exponential Moving Average (EMA)Relative Strength Index (RSI)MACD (Moving Average Convergence Divergence)Bollinger Bands