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Trend

Simple Moving Average

SMA

Averages the closing price over N periods, giving equal weight to each bar. Traders use it to smooth out noise and identify the prevailing trend direction.

Tips

Price crossing above/below the SMA often confirms trend direction, but wait for a close beyond it to reduce fakeouts
Use multiple SMA periods (e.g. 50 and 200) together; a golden cross or death cross carries more weight on higher timeframes

Parameters

Period
2 - 100