Learn how to calculate a Simple Moving Average (SMA), its significance in stock analysis, and compare it with Exponential ...

Once you’ve settled on the time period and price input for your moving average, one decision remains: which type of moving average to use. The most common are simple, weighted and exponential moving ...

Weighted moving averages use a calculation similar to simple moving averages, except each closing price is assigned a weighting.

If so, you can simply calculate the average trade price. But if not, you need to calculate a weighted average trade price, because a simple average of the prices won't be accurate.

You take a weighted average of all of the trades in your data set. A simple average involves taking a group of numbers, adding them together, and dividing by however many numbers there are.

A stock's volume-weighted average price, or VWAP, is a popular technical indicator used to identify trends and reversal points on a price chart.

Weighted moving averages use a calculation similar to simple moving averages, except each closing price is assigned a weighting.