A simple moving average calculates the average by adding all the closing prices together and dividing by the number of prices added. Simple moving averages have the advantage of being consistent when using the same stocks at the same time. SMA are quite simple, and because of the way they are calculated including a long range of prices, they often do not serve as good indicators for identifying short-term changes in a trend [4]. This is because signals take more time to appear than the ones generated by a comparable EMA. Instead, SMAs are more effective in determining long-term trend changes, which is the tradeoff for a potentially more short-term reliable moving average [4]. This is because SMAs consider only a certain amount of prices to calculate the average, and when a price is added, the last price falls off the back end. Since all the prices are averaged using the same weight, the oldest prices affect the average just as much as the newest prices [4].