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Simple Moving Average (SMA)

HTS's Simple Moving Average (SMA) Indicator calculates averages by adding the closing price of the coin for a user-defined number of time periods and then dividing this total by the number of time periods.

Interface

Supported license & Trade types

Supported License

Supported Trade Types

Beginner license

Spot trading

Simple license

Margin trading

Advanced license

Leverage trading

Formula

Simple Moving Average is an indicator with the following formula:

SMA = Pm + Pm-1 + ... + Pm - (n- 1) / n

General Settings

  • Exchange Website to monitor

  • Currency Pair to monitor for trade signals

  • Update Speed

  • Trade Signals

Tip: The exchange doesn't have to be the same exchange you are currently trading on.

Indicator Settings

  • Short Length

    • Represents the number of candles used for the shorter length calculation.

  • Long Length

    • Represents the number of candles used for the longer length calculation.

  • Swing

    • Adding a swing will create a minimum distance between the short and long result before the indicator will generate a signal.

Usage

The moving average based indicators like this one work well when evaluating data over a long period of time. This is because the longer the timeline, the more accurate the average gets.

Moving averages perform best when there is a lot of volatility (meaning an overall uptrend or an overall downtrend). When prices are stable there is not enough movement, causing the moving averages to become too sensitive. In this situation too many buy and sell signals will be produced.

A moving average is recommended with an update speed of at least 20 minutes. Some common time intervals used with SMA are between 20 minutes and 3 hours.

The moving averages work best with mainstream crypto coins like BTC, LTC, and ETH.