Define: Simple Moving Average

UK Accounting Glossary

Definition: Simple Moving Average



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Full Definition of Simple Moving Average


Simple Moving Average (SMA) is a simple, or arithmetic, moving average that is calculated by adding the closing price of the security for a number of time periods and then dividing this total by the number of time periods. Short-term averages respond quickly to changes in the price of the underlying, while long-term averages are slow to react.


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Synonyms For Simple Moving Average


SMA


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Simple Moving Average. PayrollHeaven.com. Retrieved March 31, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/simple-moving-average/

Definition Sources


Definitions for Simple Moving Average are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd March 2020.