What it means
An SMA averages price evenly across its lookback period, which makes it slower and steadier than an EMA.
What to watch
The smoother response can be useful, but it may lag more during fast market transitions.
Glossary
Simple moving average, the unweighted average of price over a chosen number of bars.
An SMA averages price evenly across its lookback period, which makes it slower and steadier than an EMA.
The smoother response can be useful, but it may lag more during fast market transitions.