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Pandas: Create a plot of adjusted closing prices and simple moving average


14. Plot with 30 & 40 Day Simple Moving Averages

Write a Pandas program to create a plot of adjusted closing prices, thirty days and forty days simple moving average of Alphabet Inc. between two specific dates.

Use the alphabet_stock_data.csv file to extract data.

What Is Simple Moving Average (SMA)?
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.

alphabet_stock_data:


alphabet_stock_data Table

Date Open High Low Close Adj Close Volume
2020-04-01 1122 1129.689941 1097.449951 1105.619995 1105.619995 2343100
2020-04-02 1098.26001 1126.859985 1096.400024 1120.839966 1120.839966 1964900
2020-04-03 1119.015015 1123.540039 1079.810059 1097.880005 1097.880005 2313400
2020-04-06 1138 1194.660034 1130.939941 1186.920044 1186.920044 2664700
... ... ... ... ... ... ...
... ... ... ... ... ... ...
2020-09-29 1470.390015 1476.662964 1458.805054 1469.329956 1469.329956 978200
2020-09-30 1466.800049 1489.75 1459.880005 1469.599976 1469.599976 1700600

Sample Solution:

Python Code :

import pandas as pd
import matplotlib.pyplot as plt
df = pd.read_csv("alphabet_stock_data.csv")
start_date = pd.to_datetime('2020-4-1')
end_date = pd.to_datetime('2020-9-30')                         
df['Date'] = pd.to_datetime(df['Date']) 
new_df = (df['Date']>= start_date) & (df['Date']<= end_date)
df1 = df.loc[new_df]
stock_data = df1.set_index('Date')
close_px = stock_data['Adj Close']
stock_data['SMA_30_days'] = stock_data.iloc[:,4].rolling(window=30).mean() 
stock_data['SMA_40_days'] = stock_data.iloc[:,4].rolling(window=40).mean()
plt.figure(figsize=[10,8])
plt.grid(True)
plt.title('Historical stock prices of Alphabet Inc. [01-04-2020 to 30-09-2020]\n',fontsize=18, color='black')
plt.plot(stock_data['Adj Close'],label='Adjusted Closing Price', color='black')
plt.plot(stock_data['SMA_30_days'],label='30 days simple moving average', color='red')
plt.plot(stock_data['SMA_40_days'],label='40 days simple moving average', color='green')
plt.legend(loc=2)
plt.show()

Sample Output:

Pandas: Create a plot of adjusted closing prices and simple moving average.

Click for download alphabet_stock_data.csv


For more Practice: Solve these Related Problems:

  • Write a Pandas program to plot the adjusted closing prices along with 30-day and 40-day simple moving averages over a specified period.
  • Write a Pandas program to calculate and overlay two simple moving averages (30 and 40 days) on the adjusted close price plot.
  • Write a Pandas program to create a line plot that shows the adjusted closing prices and their 30-day and 40-day moving averages, with clear legends.
  • Write a Pandas program to generate a plot that compares the adjusted close price with two SMAs (30 & 40 days) and highlights crossover points.

Python Code Editor:

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Next: Write a Pandas program to create a plot of adjusted closing prices, 30 days simple moving average and exponential moving average of Alphabet Inc. between two specific dates.

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