Simple Moving Average

Explanation

SMA = Sum of closing prices over N periods / N. The 50-day and 200-day SMAs are the most widely followed. Technical analysts use moving average crossovers as signals: when the short-term SMA crosses above the long-term SMA (golden cross), it's bullish; when it crosses below (death cross), it's bearish. SMAs lag price action because they include older data weighted equally with recent data. Exponential moving averages (EMAs) respond faster to recent price changes and are preferred by many traders for shorter timeframes.

How Stoquity Uses This

Stoquity incorporates simple moving average analysis across its portfolio management platform, providing real-time monitoring and AI-powered insights for every portfolio.