Simple Moving Average (SMA)
SMA is the average closing price of a stock over a certain number of days, like 20 or 50. It moves more slowly than EMA and helps you understand the long-term trend.
You can look at where the price is in relation to the SMA. If the price stays above the 50-day or 200-day SMA, the trend is likely up. Crossovers of short and long SMAs can also give signals.
For example, if the 50-day SMA of TCS moves above the 200-day SMA, some traders may treat it as a sign that a long-term uptrend is starting.
Parameter | Description | Default Value |
---|---|---|
Source | Input price data series | - |
Window | Number of periods for the indicator | 14 |