0

I understand that the SMA is just the mean of the last closing prices in a given period. What i don't understand is how this can be drawn in real time, given that EOD closing prices only change once everyday. Is it a "rolling" period, such that the moving average is calculated by the closing prices at a specific candle? So the 9:45 1min candles close for the past 10 days? Also does the most recent candle have any affect on SMA calculation? Thank You.

1
  • Candlestick analysis is a japanese methodology for understanding stock sentiment. This doesnt relate to SMA. SMA are just on (usually) close prices for a particular period (hour, EOD, week, etc.)
    – Marcus D
    Jul 10 '20 at 8:13
0

Software programs will calculate moving averages and other technical indicators any way that the programmer instructs them to. :-)

In terms of practicality, an intraday calculation of an X period simple moving average is going to include the previous X-1 periods and today's current value. IOW, during the day, a 10 day SMA will include the past 9 days and the current value.

I can't help you with candles since I have never used them. Regarding your last question, if you are looking at a 10 period SMA of one minute bars, the periodicity is minutes not days. A 10 period SMA of one minute bars at 9:45 AM would contain 10 data points from 09:36 AM to 09:45 AM, assuming that the 09:45 AM one minute bar is completed.

1
  • Thank you for clearing that up for me! I've been trying to calculate my own indicators and have been stuck getting an accurate moving average.
    – 2ook
    Jun 19 '20 at 15:10

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.