Ruby Technical Analysis

Description

A simple moving average (SMA) is an arithmetic moving average calculated by adding recent prices and then dividing that figure by the number of time periods in the calculation average. For example, one could add the closing price of a security for a number of time periods and then divide this total by that same number of periods. Short-term averages respond quickly to changes in the price of the underlying security, while long-term averages are slower to react.

For more information, please visit Investopedia.

Params & Instance Methods

#initialize
@param series [Array] An array of prices, typically closing prices
@param period [Integer] The number of periods to use in the calculation - default is 20

#sma
@return [Float] The current SMA value

#valid?
@return [Boolean] Whether or not the object is valid

Example

require 'ruby-technical-analysis'

series = [25, 24.875, 24.781, 24.594, 24.5]
period = 5

moving_averages = 
  RubyTechnicalAnalysis::MovingAverages.new(
    series: series,
    period: period
  )

p moving_averages.valid? # true

p moving_averages.sma # 24.75