Coefficient weights of Simple Moving Average (SMA) on SMA

1. What is SMA simple moving average?
2. How is SMA moving average calculated?
3. What does it mean when the 50 SMA crosses 200 SMA?

What is SMA simple moving average?

Simple Moving Average (SMA)

SMA is the easiest moving average to construct. It is simply the average price over the specified period. The average is called "moving" because it is plotted on the chart bar by bar, forming a line that moves along the chart as the average value changes.

How is SMA moving average calculated?

A simple moving average (SMA) is an arithmetic moving average calculated by adding recent prices and then dividing that figure by the number of time periods in the calculation average.

What does it mean when the 50 SMA crosses 200 SMA?

When the SMA(50) crosses above the SMA(200), the market becomes bullish, and traders will look to buy into support. Support, on the other hand, comes at two levels: on the SMA(50), but also a stronger one on the SMA(200).