Simple Moving Average (SMA)
A simple moving average (or SMA) is also known as arithmetic moving average.
The (SMA) is an average of the closing price of Stock over a specified number of periods. Here the moving average changes based on the changes in stock price.
Simple Moving Average strategy
The average of the closing price for the past five days is nothing but the stock’s five day moving average. We can observe that, as there is advancement in “Moving average” the previous data is declined.
Support Level - When Moving Average is below the stock’s current market price.