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Apply Simple Moving Average Indicator

The simple moving average sums the prices (you can choose from the closing price, the VWAP time-weighted price or the high/low/close average price) for a specific number of data points and divides by that number. The calculation for a 3-bar simple moving average is:

(price_1) + (price_2) + (price_3) divided by 3

 

To apply a Simple Moving Average

  1. From within a chart, from the Edit menu select Studies.
  2. Choose Simple Moving Avg. and Add the study.
  3. Complete parameters as necessary.

 

Important Disclosures