Knowledge Base/What is a Simple Moving Average (SMA)?

What is a Simple Moving Average (SMA)?

Simple Moving Average (SMA) is a technical indicator that calculates the average price of a security over a specified period of time.

It is useful for determining if an asset will continue or reverse its current trend. The SMA is customizable as you can adjust it for different number of time periods. For example, a 10-day SMA would be calculated by summing prices over the last ten daily-aggregates (including the current day) and dividing that value by 10. This window corresponds to the timespan of the underlying aggregates. So if a user requests SMA data and specifies a timespan of “minute”, and a window of 20, each value will be calculated using prices from the previous 20 minute aggregates, including the current one.

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