Simple moving average
Indicators I
The smoothed line
SMA = average close of the last N bars. It lags by design, and that's the point: it filters noise to show trend. Price above a rising 20 SMA = healthy trend, simple as that.
Check yourself
Why does an SMA lag price?
- Bad data
- It averages the past, old bars weigh it down correct
- Broker delay
It's built from history. Lag is the price of smoothness. Not a flaw, a filter.
Learn this properly
This term has a full interactive lesson in Wick — the chart, the pattern to tap, and a live practice terminal to try it on. Free to start.
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