What is the simple moving average calculation used in cryptocurrency trading?

1 answers

• Ajay DecoresJul 17, 2025 · 3 days ago
  The simple moving average (SMA) is a popular tool used by traders to analyze cryptocurrency price trends. It is calculated by taking the average of a specified number of closing prices over a given period. For example, a 20-day SMA would be calculated by adding up the closing prices of the last 20 days and dividing the sum by 20. The SMA helps smooth out short-term price fluctuations and provides a clearer view of the overall trend. Traders often use the SMA to identify potential support and resistance levels, as well as to generate buy or sell signals. It is important to note that the SMA is not a foolproof indicator and should be used in conjunction with other technical analysis tools and market research.
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