Studies Calculations

Simple Moving Average (MA)

Overview

What is Simple Moving Average?

Simple Moving Average is a trend-following device whose purpose is to identify or signal that a new trend has begun or that an old trend has ended or reversed.

Formula

Where Ct is the close price on day t and N is the number of periods back.

Parameters

The price series (close values) and the period n are configurable input parameters.

Reference  

Murphy, John J., Technical Analysis of the Future Markets, New York Institute of Finance, New York, NY, 1986.