---
title: "Definition of SMA"
url: https://signalscreener.fr/definition/sma/
markdown_url: https://signalscreener.fr/definition/sma.md
description: "SMA smooths price action by averaging prices over a period."
type: glossary-definition
site: Signal Screener
language: en
keywords:
  - "SMA"
  - "Simple Moving Average"
translations:
  es: https://signalscreener.fr/es/definition/sma.md
  fr: https://signalscreener.fr/fr/definition/sma.md
  pt: https://signalscreener.fr/pt/definition/sma.md
  zh: https://signalscreener.fr/zh/definition/sma.md
---

# Simple Moving Average

## What is SMA?

SMA smooths price action by averaging prices over a period. 50-day SMA shows short-term trend, 200-day shows long-term trend.

## Think of it like this

Like tracking your average daily steps. Daily numbers jump around, but 30-day average shows the real trend - are you getting more or less active over time?

## Formula

```
SMA = Sum of Prices / Number of Days
```

- **Sum of Prices**: Add up closing prices
- **Number of Days**: 50 or 200 days typically

## Why it matters

- Smooths out daily noise
- Shows trend direction
- Acts as support/resistance
- Golden cross/death cross signals

## What's a good value?

| Range | Rating | What it means |
|---|---|---|
| Price > SMA | Bullish | Uptrend, momentum positive |
| Price < SMA | Bearish | Downtrend, momentum negative |
| 50 > 200 SMA | Golden Cross | Strong bullish signal |
| 50 < 200 SMA | Death Cross | Strong bearish signal |
| 50 SMA > 200 SMA | Golden Cross | Very bullish signal |

## Real-world example

Stock at $100, 50-SMA at $95, 200-SMA at $85. Stock is above both averages (bullish). If 50-SMA crosses above 200-SMA, that's a golden cross buy signal.

## Things to watch out for

- Lagging indicator - follows price
- Whipsaws in choppy markets
- Less useful for sideways movement
- Different periods for different timeframes

---

This is educational content, not financial advice.

Source: [Definition of SMA](https://signalscreener.fr/definition/sma/) on Signal Screener. Free to quote and cite with attribution and a link to that URL, which is the canonical one.

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