What Is Simple Moving Average (SMA)? Dynamic Support and Resistance

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  • Math

  • High School

  • 12th grade

  • Calculus and Advanced Math Concepts

  • English

Author's Instructions

The Simple Moving Average (SMA) is a trend-following indicator in technical analysis that smooths price data and reduces market noise, providing entry and exit signals.

Traders sometimes use this indicator as a form of dynamic support and resistance. In addition, combining multiple Simple Moving Averages with different time periods allows traders to build effective trading strategies.