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SMA (simple moving average)

The plain average of the last n closes.

Every candle in the window counts the same. That makes an SMA calmer than an EMA of the same length, and slower to react.

The 50- and 200-day SMA are watched by many traders, which is exactly why price sometimes reacts around them.

In TradeXtool

Gate: Price close is above SMA(200) [1d].

Watch out

When an old, large candle drops out of the window the SMA can jump, even though nothing happened today.

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