When an SMA acts as a resistance indicator, it runs above the current stock price, acting as a top when the stock price tests the resistance, it typically falls back.ĭeciding which SMA time frame to use often comes down to your trading time horizon. Resistance, or the level at which a stock's price has difficulty breaking above because of the number of investors willing to sell at that price.When an SMA acts as a support indicator, it runs below the current stock price, acting as a bottom-when the stock price tests the support, it typically rebounds.
Support, or the level at which a stock's price has difficulty breaking below due to buyers wishing to take advantage of the lower value. SMAs can be used as potential indicators of: For example, you can find a stock's 20-day SMA by adding its prices over 20 days, then dividing that number by 20. The most commonly used moving average is a so-called simple moving average (SMA), which is the average closing price of a given security over a specific number of days. Environmental, Social and Governance (ESG) Investing. Bond Funds, Bond ETFs, and Preferred Securities. ADRs, Foreign Ordinaries & Canadian Stocks. Environmental, Social and Governance (ESG) ETFs. Environmental, Social and Governance (ESG) Mutual Funds. 
Benefits and Considerations of Mutual Funds.
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