Simple Moving Average (SMA)
A Simple Moving Average (SMA) calculates the arithmetic mean of closing prices over a specified period. The 50-day and 200-day SMAs are the most widely watched by institutional traders and algorithms.
SMA Formula
SMA = (P1 + P2 + ... + Pn) / n where P = closing price and n = number of periods- 50-Day SMA — Medium-term trend indicator. Price above = bullish, below = bearish.
- 200-Day SMA — Long-term trend indicator. Institutional benchmark for bull vs bear markets.
- Golden Cross — 50-day SMA crosses above 200-day SMA. Major bullish signal.
- Death Cross — 50-day SMA crosses below 200-day SMA. Major bearish signal.
- Support/Resistance — Moving averages act as dynamic support in uptrends and resistance in downtrends.
View SMA levels for all stocksCheck Moving Averages