An Introduction to Simple Moving Average (SMA)

Posted in OANDA Labs | EN | Technical analysis
Moving average by OANDA

Unlocking Profitable Trades: Technical Analysis using Simple Moving Averages (SMA) in Financial Analysis.

Introduction to the Simple Moving Average (SMA)

OANDA SMA
The table illustrates how the SMA is calculated over a five-day period (5SMA).

The SMA provides a clear picture of market movement

OANDA SMA-2
[Chart 1: Two moving averages] - 5SMA (blue) 20SMA (red)
OANDA SMA-3
[Chart 2: Three moving averages] - SMA (blue), EMA (red), LWMA (green) Overall period: 20 bars.

Improve the MA application for price tracking

Frequently Asked Questions

What is the purpose of the SMA?