SMA

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SMA
SMA (moving average) This index is considered one of the strongest indicators of existing and returns its strength and magnitude in the magnitude of the number that is used by investors and speculators for that is one of the indicators that affect the circulation and can rely on the results, there are many kinds of the moving averages) but months two types
1 - SMA (SMA)
2 - exponential arithmetic average (EMA)
And Sntnolhm now in some detail
First
SMA (SMA) and this word stands for (SIMPLE MOVING AVERAGE) and is obtained from the average closing share price for a certain period of days and then dividing this value on the number of days the average fiftieth day, for example mean total closing price two fifths on Sabakhlhma day and divided fifty


Secondly SMA exponential (EMA) which is an abbreviation for (EXPONETIAL MOVING AVERAGE) which is different from (SMA) that is calculated equations specific sports are working weight or maximize the value of Fama price the last day of trading because it shows the latest closure of value and thus shows the nearest traffic Price
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We will look now to a very important point
Uses of and benefits (MOVING AVERAGE)
First of the most important uses of it confirms the trend is it is up trend or down trend we mean if a trend he says upward revise Ketost arithmetic Are confirms this talk or walking the opposite example is there to penetrate to the average 50 days for the average 200 days, which indicates that confirm that there change has occurred in the trend for the stock or not
It is known that the arrow gives three kinds of movement or trend followed by the SMA
1 - (UP TREND) means the stock and the average moving from the bottom and يصعدان to top
2 - (DOWN TREND) means the stock and the average moving from top to bottom
3 - (TRADING RANGE) when the average moves up and down and Aistqr a certain shape and much volatility this type of medium is not desirable and not dependent upon
Always SMA continued to stock movement if find top share rose therefore always said that the average follow the movement of the stock and not the arrow that follows the Mediterranean as in drawing


This is the interest (identify trend and confirmed) of the most important benefits of SMA because it determines the direction of movement stock that must be adhered to and Atsiar reversed because that things serious serious possible committed investor and should not risk at the point of volatility average where possible gives signals false especially if There are other indicators give clues reverse indicators given by the arithmetic average
Whenever the long-term average whenever appropriate share many oscillators and until we get quiet on the average line can benefit from it
The arithmetic average length is not specified lengths certain, but there are lengths can be used
21-50-89-150-200 day
10-30-40 week
If we choose arithmetic average and the time period is called the arithmetic average day on
(DMA) as well as a week if called arithmetic average weekly change from daily to weekly dividing 5 because the number of working days is a five-day week and the monthly change dividing 21 because the number of days a month 21 days
Experimentation and must try more than once to get the appropriate length that is in harmony with the movement of the stock and is expressed as
Note if the goal is speculation 50 suitable Lama average if invest an average of 50 with 200 be suitable


Secondly
The second benefit is (PRICE location) or determine the price of the stock at a certain point
It means you share price at a certain point of chart or a given time is higher or lower than the expected price of the shares through investors during the past few days, which is indicated by the arithmetic mean, it means that the price per share higher than the arithmetic mean, which reflects average rating investors to shares during the period Previous and if under the arithmetic mean of vice
So when rising curve shares and touch line arithmetic means he returned to the average price expected by investors but if the Chterq this medium means that he intends to increase the price expected to top and this point is a point purchase of shares and vice tried to penetrate the average for the bottom is a selling point, and the same speech can be said when it penetrates the arithmetic average for 50 days short Alintost arithmetic long or slow 200-day heading to the top or bottom see chart


Thirdly
Third identify points of interest in terms of support and resistance is the arithmetic average of the most important benefits it gives support and resistance points powerful use by analysts in predicting the behavior of stock in the future
If the arithmetic average down arrow, it gives support points and if the arrow it gives resistance points, but analysts differed in lengths averages that can be relied upon, but lengths of months 40 days and 50 days as in the drawing



Eventually come up with the most important uses of the arithmetic average, as follows
1 - use an average of 40 days or 50 days to determine support and resistance points for shares
2 - Note the penetration process an average of 50 days for the average 200 days and show Albolsh and Birch
3 - Get from an average 40 days on the real value of the stock and is it now High or Low

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