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Technical analysis
Also called: SMA, Simple moving average, DMA, 200 DMA
A moving average is the average closing price over the last N periods, recalculated every bar so it 'moves' with the price. The 50-day and 200-day averages are the ones most often quoted for Indian stocks.
SMA(N) = (Close₁ + Close₂ + … + Close_N) ÷ N
Closes of ₹100, ₹102, ₹101, ₹105 and ₹107 give a 5-day simple moving average of ₹515 ÷ 5 = ₹103.
It smooths the daily noise so the direction underneath is visible.
Price above a rising average is the plainest definition of an uptrend. The fifty, hundred-and-fifty, and two-hundred day averages are the ones most widely watched, which is part of why they matter.
A moving average is the average closing price over the last N periods, recalculated every bar so it 'moves' with the price. The 50-day and 200-day averages are the ones most often quoted for Indian stocks.
SMA(N) = (Close₁ + Close₂ + … + Close_N) ÷ N. Closes of ₹100, ₹102, ₹101, ₹105 and ₹107 give a 5-day simple moving average of ₹515 ÷ 5 = ₹103.
No. Moving average describes one aspect of a company, a price or a contract, and it is best read alongside other numbers and the business itself. Jivani Markets is a research and education platform; it does not give buy, sell or hold recommendations.