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Simple Moving Average (SMA) Explained. A simple moving average (SMA) is the simplest type of moving average in forex analysis (DUH!). Basically, a simple moving average is calculated by adding up the last âXâ periodâs closing prices and then dividing that number by X.
Definition of moving average: Mean of time series data (observations equally spaced in time) from several consecutive periods. Called 'moving' because it is continually recomputed as new data becomes available, it progresses by ... Dictionary Term of Day Articles Subjects Sign Up BusinessDictionary