Simple Moving Average

(Example: the line is a fifteen day Simple Moving Average)

A simple moving average is the average stock price over a period of time, it is calculated by adding the stock closing pricer over a period of time and then dividing this total by the number of time periods. For instance, a fifteen days SMA is the average price of previous fifteen days closing price.

Formula:
SMA =P 1( the first day price of previous days)+P2+P3…+Pn/N

N=the N day