Forex glossary

Simple moving average (SMA) in Forex

A clear definition of Simple moving average (SMA), with practical context for reading markets and making better trading decisions.

Level 4 · Give Indicators a JobForex basics

Definition

A moving average that gives every selected price equal weight. It reacts steadily but more slowly to a new move.

A 20-period SMA averages the closing prices of the latest 20 periods.

Understanding Simple moving average (SMA) helps traders interpret market information, plan decisions, and manage risk with more context.

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