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-7.15 - -0.30% -6.26 - -0.11% -3.31 - -0.19%

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Simple Moving Average

Introduction To Moving Averages

An indicator used in technical analysis to smooth price data and help confirm market trends. It reduces the effects of sharp, isolated price movements and shows the underlying trend more clearly. It is calculated by adding together closing prices for a particular period and then averaging them. As time passes, the oldest price is dropped and replaced by the latest one.  The two most common types of moving averages are Simple Moving Average (SMA) and Exponential Moving Average (EMA). Moving averages are used as tools to create the Moving Average Convergence Divergence – MACD and Bollinger Bands.       

Calculating Simple Moving Averages (SMA)

A simple moving average or SMA, Is a price line that smooth’s out a investments path to get an indication of the trend. For example, if  a closing prices over the last five days are $37.00, $36.00, $34.00, $32.00. $31.00 then the SMA would be $34.00 derived from adding all the closing prices then dividing by five. This would create a five-day SMA that could be monitored for trends. The most common moving averages are 20, 50, and 200 days.

SMA Calculations on Spreadsheet

 Calculating Exponential Moving Average (EMA)

An exponential moving average, EMA, is very similar to a simple moving average, but it places more weight on the more recent prices than on past one, making it more receptive to changes in the stocks price trend. This means it reacts more quickly to recent price changes than a simple moving average.

Investing using Technical Analysis,  Exponential Moving Average

Moving Average Crossover

The point at which two moving averages, one with a short interval and the other a longer one, intersect. Technical analysts interpret moving average crossovers as significant buy or sell signals.

Summary of Moving Averages

Technical analysis claims to be able to forecast future market movements solely through the study of past market price and volume data. It contrasts with market forecasts based on the analysis of the fundamental factors influencing supply and demand for shares, currencies or commodities, so-called fundamental analysis. Technical analysts, also known as technicians or chartists, try to identify price patterns and trends in financial markets and exploit them. They search for chart patterns such as head and shoulders or double top reversal patterns, study indicators such as moving averages and look for chart support and resistance levels. Major investment banks and brokerages normally employ technical as well as fundamental analysts. One of the major technical analysis tools used is the moving average.

Last update: 04/21/2017 5:40:pm EST

Stocks Below 200 DMA

Symbol Company % Below
CREGChina Recycling Energy Corporat -6.1%
RUSSDirexion Daily Russia Bear 3x S -10.6%
CNNXCone Midstream Partners LP Comm -3.89%
TCOTaubman Centers, Inc. Common St -5.89%
MURMurphy Oil Corporation Common S -8.27%
TZADirexion Small Cap Bear 3X Shar -15.93%
CHSPChesapeake Lodging Trust Common -0.66%
AGZDWisdomTree Barclays Interest Ra -0.09%
AOIAlliance One International, Inc -18.86%
MVTBlackrock MuniVest Fund II, Inc -0.7%
ONCYOncolytics Biotech, Inc. -34%
BHPBHP Billiton Limited Common Sto -4.44%
Table 2

Stocks Up A Minimum
of 60% above 200 DMA

Symbol Company % Above
CGIXCancer Genetics, Inc. 92.86%
WHLRWheeler Real Estate Investment 392.47%
ASPXN/A 71.19%
^GSPCN/A 71.19%
HUSAHouston American Energy Corpora 59.09%
GKNTGeeknet, Inc. 77.6%
ROCN/A 77.6%
HPJHighpower International Inc 85.12%
ESPREsperion Therapeutics, Inc. 90.8%
ICELN/A 100%
CODEN/A 225%
SIBCState Investors Bancorp, Inc. 225%
RPRXWRepros Therapeutics Inc. 225%
GEVASynageva BioPharma Corp. 81.71%
Table 1

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