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SMA (SIMPLE MOVING AVERAGE)

Simple average of closes of last N candles.

Published by The Retail Trader · JUL 31, 2026 · Indicators

SMA (Simple Moving Average) — simple average of the closes of the last N candles. The 50 SMA and 200 SMA are the most common.

WHERE THIS FITS IN

This term comes under Indicators, in the "TREND INDICATORS" section. This tells what is the direction, not timing:

RELATED TERMS TO READ

Other terms in this group — understanding them together is more useful:
• EMA (Exponential Moving Average)
• Crossover
• Golden Cross
• Death Cross
• Dynamic Support / Resistance
• Supertrend
• ADX / DMI
• Parabolic SAR
• Ichimoku Cloud

To read the entire group and all its examples in one place, see the journal "INDICATORS: FORMULA TOOLS" - this term has been taken from there.

This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.

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