Simple Moving Average (SMA)
The simple moving average (SMA) is an indicator of health for individual stocks. It can be used to identify market trends. According to some investors, a healthy stock will consistently close above the 200 day moving average.
By default, YCharts displays the 50-Day and 200-Day SMAs.
The 50 Day SMA is calculated as:
The Sum of Closing Price from Previous 50 Days / 50
The 200 Day SMA is calculated as:
The Sum of Closing Price from Previous 200 Days / 200