#Educational_Post

#SMA

Lets Learn and earn

1. Simple Moving Average (SMA)

The Simple Moving Average, or SMA, is the most straightforward of the bunch. It calculates the average of prices over a specified period equally. Here’s how it works:

SMA = (Sum of Closing Prices for n Periods) / n

Sum of Closing Prices for n Periods: Add up the closing prices for the number of periods you’re interested in (e.g., 10 days, 50 days, or 200 days).n: The number of data points or periods you’re averaging.

For example, to calculate a 10-day SMA, you would add up the closing prices of the past 10 days and divide by 10.

SMA Use Case: SMAs are excellent for identifying longer-term trends. They provide a smoother line on the chart but may be less responsive to recent price changes compared to other types of MAs.

Please follow my binance Feed For more amazing posts like This.