A share closed at RM2.10, RM2.14, RM2.12, RM2.18 and RM2.20 over five sessions. What is its 5-day simple moving average?
A simple moving average adds the last n closes and divides by n: (2.10 + 2.14 + 2.12 + 2.18 + 2.20) ÷ 5 = 10.74 ÷ 5 = RM2.148. RM2.150 averages only the first and last closes. RM2.167 is the 3-day average of the latest three closes. RM2.200 is simply the last close, which is not an average. Source: SIDC Module 7 Study Outline (Jul-Dec 2026) Topic 6 Technical Analysis, 6.6 Indicators; J. J. Murphy, Technical Analysis of the Financial Markets (NYIF, 1999), ch. on moving averages (as at October 2026).
Averaging the first and last prices, or using fewer sessions than the stated period.
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