Indicators

SMA (Simple Moving Average)

A moving average calculated by simply averaging the closing prices of a fixed number of recent periods, with every period weighted equally.

A Simple Moving Average (SMA) is calculated by averaging the closing prices of a fixed number of recent periods - a 20-period SMA on a daily chart, for example, averages the last 20 daily closes. Every period in that window is weighted equally, which makes the SMA smoother, but slower to react to sudden price changes, than an Exponential Moving Average (EMA) covering the same number of periods.

See both moving average types compared side by side in EMA and SMA Explained on TradingView.