Simple Moving AverageSMA / MA

Definition

Arithmetic mean of the last n closes, smoothing price and identifying trend direction.

Formula

SMA = (C₁+…+Cₙ)/n

Default parameters

{
  "periods": [
    5,
    10,
    20,
    60,
    120,
    250
  ]
}

How to read it

Price above the MA is bullish, below is bearish; commonly 5/10/20/60/120/250-day; short MA crossing above long MA = golden cross (buy), crossing below = death cross (sell).

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