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Simple Moving Average Formula
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The simple moving average formula is the average closing price of a security over the last "x" periods. Calculating the simple moving average is not something for the technical analysis of securities. This formula is also a key tenet to engineering and mathematical studies. This detailed article from Wikipedia [1] delves into formulas for the simple moving average, cumulative moving average, weighted moving average, and exponential moving average
Let's look at a simple moving average example with Microsoft. The last five closing prices for Microsoft are:
28.93+28.48+28.44+28.91+28.48 = 143.24
Quite simply to calculate the simple moving average formula, you divide the total of the closing prices by the number of periods.
5-day SMA = 143.24/5 = 28.65
I love the fact the SMA is just math.
Every indicator is based on math, but the SMA is not some proprietary calculation with trademark requirements.

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