Blog : SMA Indicator

SMA

A Moving Average (MA) is a price-based, lagging indicator that displays the average price of a security over a set period of time. It is used to gauge momentum, confirm trends, and define areas of support and resistance by smoothing out fluctuations in price and volume. As a lagging indicator, it reacts to past events and is used for confirmations and analysis rather than prediction.

SMA Inputs
Trend Following Mean Reversion
Period 20 Period 20
Source close Source close
SMA Long - Entry Trigger Long - Exit Trigger Short - Entry Trigger Short - Exit Trigger
Trend Following Price crossover SMA Price crossunder SMA Price crossunder SMA Price crossover SMA
Mean Reversion Price crossunder SMA Price crossover SMA Price crossover SMA Price crossunder SMA
SMA Long - Entry Confluence Long - Exit Confluence Short - Entry Confluence Short - Exit Confluence
Trend Following Price > SMA Price < SMA Price < SMA Price > SMA
Mean Reversion Price < SMA Price > SMA Price > SMA Price < SMA