SimpleMovingAverage

The Simple Moving Average (SMA) is a widely utilized indicator in technical analysis, offering a smoothed-out price average over a specific time period. It's calculated by adding up the closing prices of the asset for a set number of time periods, then dividing this total by the number of time periods.

• Simplicity and Clarity: The SMA provides a clear view of the price trend by dampening the noise of daily price fluctuations.
• Trend Identification: It helps in identifying the direction of the trend. A rising SMA indicates an uptrend, while a declining SMA suggests a downtrend.
• Support and Resistance: Often, the SMA can act as a support or resistance level for price movements.
• Crossovers: Traders pay close attention to SMA crossovers. When a short-term SMA crosses above a long-term SMA, it may signal a buying opportunity, known as a "golden cross." Conversely, when the short-term SMA crosses below, it may suggest a selling point, termed a "death cross."

Constructor

constructor(
	period: number
): SimpleMovingAverage;

Properties

Methods

add(price: number): void;