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The average is moving because as you add every subsequent day’s trading into the calculation the first price drops out from the total and you still divide by five, thus it “moves”.
Calculating Simple Moving Average The simple moving average formula for computing an SMA is: SMA = (P₁ + P₂ + ... + Pₙ) / n Where: Pₙ = price at observation #n n = total number of observations ...