﻿ Pandas: Create a plot of adjusted closing prices and simple moving average - w3resource # Pandas: Create a plot of adjusted closing prices and simple moving average

## Pandas: Plotting Exercise-14 with Solution

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
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')
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['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:

``` ```

Python Code Editor:

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## Python: Tips of the Day

Trenary operator:

```>>> "Python ROCK" if True else " I AM GRUMPY"
"Python ROCK"
```