Moving averages
A moving average measures the trend; it is not a signal. · 5 min
Charts in this lesson are generated. They are not real market data and predict nothing.
A simple moving average (SMA) of 10 is the average of the last 10 closes, recomputed every candle. An exponential moving average (EMA) weights recent closes more, so it reacts faster.
Worked example: a 5-candle average
(156.43 + 156.11 + 155.14 + 154.53 + 154.30) ÷ 5 = 155.30
Closes 10, 11, 12, 13, 14. What is the 5-candle SMA?