Skip to content

SMA

Smooth average of closing prices over a window. Confirms trend direction and key levels.

Add SMA to a mix
Loading price bars

Time Period:

About

A Simple Moving Average (SMA) averages closing prices over a window (commonly 20, 50, or 200 bars). Each new bar drops the oldest close so the line tracks trend without reacting to a single print.

Price above a rising SMA supports an uptrend. Price below a falling SMA supports a downtrend. Flattening or frequent crosses often mean the market is range-bound.

In a mix, pair a faster SMA with close or a slower SMA for a cross, then add a second signal (ADX, volume, or a band) so the entry is not a lone moving-average flip.