What is SMA?
The simple average of the last N closes, drawn as a smooth line.
Animation · SMA
Learn “SMA” in an animated lesson
- Indicators in Practice & BacktestingLag and False Signals
Every indicator based on past prices lags, and in a ranging market the signals will whipsaw you again and again.
- Trend IndicatorsExponential Moving Average (EMA)
An EMA gives more weight to recent prices, so it turns faster than an SMA.
- Trend IndicatorsSimple Moving Average (SMA)
Average the last N closing prices and draw them as a smooth line that filters out day-to-day noise.
Related terms
See how “SMA” works for yourself with an animation you can drag and play.
Go to “Lag and False Signals”