what is sma investopedia
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.he 200 simple moving average (SMA) is considered a key indicator by traders and market analysts for determining the overall ...