Simple Moving Average (SMA)

A technical analysis tool that calculates the average of a selected range of prices by the number of periods in that range. Traders use this indicator to assist in determining if the price will continue in the current direction or reverse. Traders often compare multiple SMAs covering different time frames. When the short term SMA is above the long term SMA, an uptrend is expected. Some popular trading patterns include a death cross and golden cross.

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