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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.
Moving Average Period. Moving Average Period Meaning. The length of a moving average period, or simply moving average period, means how many bars are used for calculating the moving average. When you are selecting a moving average period length, you are deciding how far back to the history you want to look.