Definitions
In plain terms
A 20-day SMA adds the eligible values for 20 sessions and divides by 20, then rolls forward one session at a time.
Technical
The specification fixes price field, window length, session order, minimum periods, adjustment basis, and missing-value treatment.
Scope
It gives equal weight to included observations and is not an EMA.
Formula
SMA = sum(x_i for i in W) / nSMA_t=\frac{1}{n}\sum_{i\in W_t}x_i| Symbol | Meaning | Unit |
|---|---|---|
x_i | eligible observation i | input unit |
n | number of eligible observations | observations |
Output unit: input unit
Examples
- A Fintech Builder lesson can compute or identify Simple Moving Average only after declaring its inputs, timing, and edge-case rules.
Common misconceptions
- It gives equal weight to included observations and is not an EMA.
Concept relationships
Where this concept is used
Evidence and governance
- Percent Above Moving Average StockCharts ChartSchool · secondary methodology
Supports: preferred label, short definition, technical definition, formula
Limits: Threshold interpretation and universe composition are contextual and must not be treated as guaranteed signals.
- Reviewed by
- fintech-builder-batch-005
- Last reviewed
- 2026-07-27
- Next review
- 2027-07-27
- Record status
- evidence reviewed
This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.