01 · Indicator · Simple Moving Average
What is Simple Moving Average (SMA)?
The simple moving average is the arithmetic mean of the last N closes. It smooths candle noise and reveals the underlying direction of the market.
The most watched are the 50 and 200: many investors follow them, which makes them frequent reaction levels.
02 · Indicator · Simple Moving Average
The calculation
SMA(N) = (C₁ + C₂ + … + C_N) / N. Every close has the same weight.
Because old data weighs as much as recent data, the SMA reacts more slowly than the EMA.
03 · Indicator · Simple Moving Average
Reading the signals
Price above a rising SMA: uptrend. The 50 crossing above the 200 is the 'golden cross', the opposite the 'death cross'.
These crosses come late: they confirm a trend more than they announce it.
04 · Indicator · Simple Moving Average
Settings and combinations
GraphTrade offers an adjustable SMA plus ready-made 50 and 200 SMAs, in the Averages group. It pairs well with: Exponential Moving Average (EMA), Weighted Moving Average (WMA), MACD.
To put the signal in context, check the Heatmap, the news or ask the AI Compass. No indicator is investment advice.
◆ Step by step
Get started in 4 steps
- 01
Open a chart
Search for an asset on the Charts page and pick a timeframe.
- 02
Add the indicator
Open Indicators, Moving averages group, then click Simple Moving Average.
- 03
Adjust the settings
Change the parameters in the indicator sheet to suit your horizon.
- 04
Confirm the signal
Cross-check with the main trend and another indicator before concluding.
◆ FAQ
Your questions, clear answers.
01Which SMA should I use?
20 for short term, 50 for medium term and 200 for the long-term trend.
02What is a golden cross?
The 50 SMA crossing above the 200 SMA, read as a long-term bullish signal.
03SMA or EMA?
The SMA is steadier, the EMA faster. Many traders combine both.