Smoothed Moving Average
Trend, SMMA
- What it shows
A smoothed moving average: a slow line that follows the trend and ignores most short swings.
- How it is built
Each new value is the previous value moved by 1 / N of its distance to the latest close. The memory of old bars fades slowly, so the line is steadier than an EMA of the same length.
Default: Length 7, source close.
- How traders read it
- Use it where a calm line is needed, away from the noise.
- Price far from the line shows a stretched move, price returning to it a pullback.
- It lags more than other averages of the same length.
Related indicators
SupertrendIchimoku CloudParabolic SARAverage Directional Index