How to compute the simple moving average with Pandas using Python
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There is a very simple way to compute the SMA in Python using the DataFrame.rolling() method.
Here is the code
# For the stock prices
import yfinance as yf
# We download the stocks
df = yf.download("AAPL", start="2019-01-01")
# We compute and plot the 20D and 200D SMA
df["Adj Close"].plot(title="AAPL close prices with 20 SMA and 200 SMA", label="Close price", legend=True)
df["Adj Close"].rolling(20).mean().plot(label="20SMA", legend=True)
df["Adj Close"].rolling(200).mean().plot(label="200SMA", legend=True)
The results
Here you are! You now know how to compute the simple moving average with Pandas using Python.
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