Simple Moving Average (SMA)

Returns the Simple Moving Average, which calculates the arithmetic mean of closing prices over a specified period. SMA is one of the most widely used technical indicators for trend analysis.

Common SMA Periods

Period Usage
10-day Short-term trend
20-day Short-term trend
50-day Medium-term trend (golden/death cross)
200-day Long-term trend (golden/death cross)

Parameters

Parameter Description Default
Symbol Stock ticker symbol Required
Days Number of periods for average 30
StartDate Calculate SMA as of this date Today

Golden Cross / Death Cross

  • Golden Cross: 50-day SMA crosses above 200-day SMA (bullish signal)
  • Death Cross: 50-day SMA crosses below 200-day SMA (bearish signal)

Examples

=SimpleMovingAverage("AAPL")
30-day SMA for Apple
=SimpleMovingAverage("AAPL", "50")
50-day SMA for Apple
=SimpleMovingAverage("MSFT", "200")
200-day SMA for Microsoft
=SimpleMovingAverage("SPY", "20")
20-day SMA for SPY
=SimpleMovingAverage("AAPL", "50", DATE(2024,1,15))
Historical SMA
=SimpleMovingAverage(A1, B1)
Symbol and days from cells

When to Use

  • Identify trend direction (price above/below SMA)
  • Calculate support and resistance levels
  • Golden cross and death cross analysis
  • Compare short-term vs long-term trends
  • Smooth out price volatility for trend analysis

When NOT to Use

Scenario Use Instead
Need faster response to price changes ExponentialMovingAverage()
Need momentum oscillator RelativeStrengthIndex() or Momentum()
Need volume-weighted average AverageDailyVolume()
Need volatility measure StandardDeviationOnClosePrice()

Common Issues & FAQ

Q: Why is SMA returning "NA"? A: Check that:

  • The symbol is valid and actively traded
  • There is sufficient historical data for the period specified
  • The stock has been trading for at least the number of days requested

Q: What period should I use? A: Common periods:

  • 10-20 days for short-term trading
  • 50 days for medium-term analysis
  • 200 days for long-term trend identification

Q: How does SMA differ from EMA? A: SMA gives equal weight to all prices in the period. EMA gives more weight to recent prices, making it more responsive to new information.

Get Access to 1 Billion Usable Market data points IN YOUR EXCEL SHEETS WITH EASY TO USE EXCEL FUNCTIONS

Get started today
MarketXLS Excel Add-in Tutorial - How to Use Simple Moving Average (SMA) and Other Financial Formulas
How does MarketXLS work?