SMA
SMA is the arithmetic average of closing prices over a selected period.
What this is
The sma filter returns the SMA price and compares it with the rule's numeric value. It does not compare current price with SMA. Use price_vs_sma_pct for price position or crossing relative to SMA.
When to use it
Use raw SMA when the average itself must be above or below a stable market level. SMA is also useful as a slower baseline when recent price changes should not dominate the calculation.
Before you start
- Default parameter is period: 20 .
- Available operators are above and below .
- The value is a fixed quote-price threshold.
- SMA weights every close in the period equally and usually reacts more slowly than EMA.
Step by step
Step 1: Choose the timeframe
Use the timeframe that defines the baseline for the setup. The same period represents a very different duration on 5-minute and daily candles.
Step 2: Set the period
Longer periods smooth more variation but respond later. Make sure the selected range contains enough candles for warm-up.
Step 3: Set the fixed level
Select above or below and enter the price level. For a reusable relative condition, switch to the price-versus-SMA filter instead.
What you should see
SMA below 65000 passes when the calculated SMA is lower than 65000 , regardless of whether current price is above or below the SMA.
Common mistakes
- confusing raw SMA with price versus SMA
- comparing periods across different timeframes as if they cover the same duration
- using a fixed level that quickly becomes irrelevant
- expecting SMA to react immediately to a breakout
Related articles
- Filters Reference
- EMA
- Price Versus Moving Averages