How to Calculate Moving Average
What is Moving Average?
Calculates simple, exponential, and weighted moving averages for financial data analysis and trend identification.
Formula
SMA = Sum of prices over n periods / n
Step-by-Step Guide
- 1Enter a series of data points (prices, values)
- 2Specify the moving average period or window
- 3Calculate the smoothed average line
Worked Examples
Input
Stock prices [10, 12, 11, 13, 14], 3-period SMA
Result
[11, 12, 12.67]
Trend smoothing in technical analysis
Common Mistakes to Avoid
- ✕Choosing wrong period for your analysis timeframe
- ✕Confusing SMA with exponential moving average
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