Learn How To Calculate Moving Averages

Formula to Calculate Simple Moving Average (SMA)

Moving average is calculated on the latest price of the stock while we drop the earlier prices from the series and taking average of the them so that we can plot them in the chart.

Moving average can be calculated on series of opening price, closing price, high price or low price of a stock.

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Formula to Calculate Weighted Moving Average (WMA)

A Weighted Moving Average (WMA) is a type of moving average in which each data point is given a variable weight or relevance in the calculation.

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Formula to Calculate Exponential Moving Average (EMA)

Another kind of moving average is exponential moving average (EMA). There are certain advantages of EMA like it considers the importance on the most recent stock prices than the previous stock prices.

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SMA Vs. WMA Vs. EMA Example

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Other Commonly Used Moving Averages: Explanation and Formula.

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