Market Intelligence › Basic Terminologies
Reducing the average noise of the data; This causes lag.
Published by The Retail Trader · JUL 31, 2026 · Indicators
Smoothing — reducing the average noise of the data; This causes lag.
This term comes under Indicators, in the section "GRAMMAR OF INDICATOR". First the words which are applied on every indicator:
Other terms in this group — understanding them together is more useful:
• Indicator
• Overlay
• Oscillator
• Leading vs Lagging
• Period / Length
• Signal
• Divergence
• Confluence
• Repainting
• Whipsaw Signals
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.