DSE Moving Average Calculator

What is a Moving Average (SMA)?

A Simple Moving Average (SMA) is a technical indicator that averages a stock's closing prices over a specific number of days. It is one of the most widely used tools on the Dhaka Stock Exchange to identify trend direction and potential support/resistance levels.

Why use Moving Averages on the DSE?

The Bangladesh market can be volatile, with daily price fluctuations often masking the long-term trend. Moving averages help "smooth" this price action:

• Short-term (20-Day SMA): Used by active traders to identify immediate momentum.
• Medium-term (50-Day SMA): A common benchmark for institutional investors to determine the health of a stock.
• Long-term (200-Day SMA): The ultimate indicator of a bull or bear market. If the index or a major stock like SQURPHARMA stays above its 200-day SMA, the overall trend is considered bullish.

Common Trading Signals:

1. Price Crossover: When the stock price crosses above its SMA, it is often seen as a Buy Signal. Conversely, dropping below the SMA is a Sell Signal.
2. Golden Cross: When a short-term SMA (like 50-day) crosses above a long-term SMA (200-day). This indicates a major bullish shift.
3. Death Cross: When the 50-day SMA falls below the 200-day SMA, signaling a potential long-term bearish trend.

How to use this calculator?

Simply input the closing prices of your favorite stock for the last few days (separated by commas) and choose your period. The tool will calculate the average and tell you if the current price is above or below the trend line.