Simple Moving Average (SMA), also known as an arithmetic moving average, means a simple averaging of the closing prices for a specific period. The term "moving average" refers to a simple moving average (SMA).

Simple moving averages follow the simplest of statistics, taking the average of prices over a specific period of time in the past. The simple moving average calculation is just like its name - simple. It simply takes the daily average and moves it over time, with each candle thus getting the same value.