## Simple Moving Average Solution

STEP 0: Pre-Calculation Summary
Formula Used
Moving Average = Average Period/Total Intervals
Mavg = Avg/N
This formula uses 3 Variables
Variables Used
Moving Average - Moving Average involves taking the average or weighted average of previous periods⁠ to forecast the future.
Average Period - Average Period refers to the arithmetic mean of a given set of values over a specified period.
Total Intervals - Total Intervals refers to the period of time for which average values have been taken.
STEP 1: Convert Input(s) to Base Unit
Average Period: 100000 --> No Conversion Required
Total Intervals: 5 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
Mavg = Avg/N --> 100000/5
Evaluating ... ...
Mavg = 20000
STEP 3: Convert Result to Output's Unit
20000 --> No Conversion Required
20000 <-- Moving Average
(Calculation completed in 00.004 seconds)
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## Credits

Created by Kashish Arora
Satyawati College (DU), New Delhi
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Institute of Chartered and Financial Analysts of India National college (ICFAI National College), HUBLI
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## < 3 Financial Forecasting Calculators

Simple Linear Regression
Dependent Variable = Regression Line Slope*Independent Variable+Y Intercept
Straight Line Model
Straight Line Model = Current Sales*(1+Growth Rate/100)
Simple Moving Average
Moving Average = Average Period/Total Intervals

## Simple Moving Average Formula

Moving Average = Average Period/Total Intervals
Mavg = Avg/N

## What is Moving Average?

Moving average involves taking the average or weighted average of previous periods⁠ to forecast the future. This method involves more closely examining a business’s high or low demands, so it’s often beneficial for short-term forecasting. For example, you can use it to forecast next month’s sales by averaging the previous quarter.

## Types of Moving Average

The following are the two basic forms of moving averages:
1. Simple Moving Average (SMA)
The simple moving average (SMA) is a straightforward technical indicator that is obtained by summing the recent data points in a given set and dividing the total by the number of time periods. Traders use the SMA indicator to generate signals on when to enter or exit a market. An SMA is backward-looking, as it relies on the past price data for a given period. It can be computed for different types of prices, i.e., high, low, open, and close.

2. Exponential Moving Average (EMA)
The other type of moving average is the exponential moving average (EMA), which gives more weight to the most recent price points to make it more responsive to recent data points. An exponential moving average tends to be more responsive to recent price changes, as compared to the simple moving average which applies equal weight to all price changes in the given period.

## How to Calculate Simple Moving Average?

Simple Moving Average calculator uses Moving Average = Average Period/Total Intervals to calculate the Moving Average, Simple Moving Average are usually calculated to identify the direction of a trend. This can be done in a variety of ways, with the most common being simple and weighted moving averages. Moving Average is denoted by Mavg symbol.

How to calculate Simple Moving Average using this online calculator? To use this online calculator for Simple Moving Average, enter Average Period (Avg) & Total Intervals (N) and hit the calculate button. Here is how the Simple Moving Average calculation can be explained with given input values -> 20000 = 100000/5.

### FAQ

What is Simple Moving Average?
Simple Moving Average are usually calculated to identify the direction of a trend. This can be done in a variety of ways, with the most common being simple and weighted moving averages and is represented as Mavg = Avg/N or Moving Average = Average Period/Total Intervals. Average Period refers to the arithmetic mean of a given set of values over a specified period & Total Intervals refers to the period of time for which average values have been taken.
How to calculate Simple Moving Average?
Simple Moving Average are usually calculated to identify the direction of a trend. This can be done in a variety of ways, with the most common being simple and weighted moving averages is calculated using Moving Average = Average Period/Total Intervals. To calculate Simple Moving Average, you need Average Period (Avg) & Total Intervals (N). With our tool, you need to enter the respective value for Average Period & Total Intervals and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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