Indicators

Simple Moving Average (SMA)

What is it?

The Simple Moving Average (SMA) is the average price over a set period, giving equal weight to all prices. It’s a straightforward way to smooth price data and spot trends.

How is it used?

  • Trend direction: An upward SMA signals a bullish trend; a downward SMA signals bearish.
  • Crossovers: A short SMA (e.g., 50) crossing above a long SMA (e.g., 200) is a “golden cross” (buy); crossing below is a “death cross” (sell).
  • Support/resistance: SMAs often act as dynamic support or resistance.

How is it calculated?

SMA = (Price 1 + Price 2 + … + Price n) / n  

Where n is the period (e.g., 50).

The above content is designed for informational purposes only, and is explicitly not investment advice. Algo Pilot is a US based technology company and not a bank, broker-dealer, or RIA. As such, Algo Pilot LLC does not provide investment advice and is not a member, SIPC. Brokerage services offered by 3rd parties are not directly affiliated with Algo Pilot LLC, and Algo Pilot users may choose the broker relationship that they desire.

Algo Pilot Icon LogoX LogoLinkedIn Logo

Algo PilotTM is a US based technology company and not a bank, broker-dealer, or RIA. As such, Algo Pilot LLC does not provide investment advice and is not a member, SIPC. Brokerage services offered by 3rd parties are not directly affiliated with Algo Pilot LLC, and Algo PilotTM users may choose the broker relationship that they desire. Algo Pilot's Algo Builder is Patent Pending with the USPTO.

Past performance, whether actual or indicated by historical tests of strategies, is not a guarantee of future performance or success. Investing in stocks, futures, options, currencies, cryptocurrencies, and other financial vehicles involves risk. Investing in securities involves potential loss of principal. Trading in options or security futures involves a high degree of risk and investors may lose more than their initial investment; options trading is not suitable for all investors. Before trading, please read all applicable risk disclosures such as Characteristics and Risks of Standardized Options disclosure from your broker.

Algo Pilot software is proudly made in America  
Close Cookie Popup
We value your privacy
By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and for marketing as outlined in our privacy policy.
Strictly Necessary (Always Active)
Cookies required to enable basic website functionality.
Cookies helping us understand how this website performs, how visitors interact with the site, and whether there may be technical issues.
Cookies used to deliver advertising that is more relevant to you and your interests.
Cookies allowing the website to remember choices you make (such as your user name, language, or the region you are in).