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| Simple Moving Average (SMA) |
| Simple Moving Average (SMA) is a simple technical tools, it is the arithmetic average of the Close of the security for a number of time periods. Short-term averages respond quickly to changes in the price of the underlying, while long-term averages are slow to react. |
Moving Average shows the average value of a security's price over a set period. Moving averages are generally used to measure momentum and define areas of possible support and resistance.
SMA chart displays lines of 10, 20, 50 SMA values.
Figure: A chart of Hang Seng Bank with SMA
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Chart Guide
