# Simple Moving Average (SMA)

Simple Moving Average (SMA) is a moving average indicator which measures the trend direction over a period of time. Unlike EMA, this indicator places the same weight on each and every day within the selected period. Because of this, SMA reacts slower to recent price changes.

### **Trading application**

SMA is a line which is shown within the price graph, moving close to the price and eventually intersecting with it. SMA moving above the price indicates a downtrend while SMA moving below the price indicates an uptrend. It can also act as a level of Support/Resistance in uptrends and downtrends, respectively. SMA is one of the better Moving Averages for identifying Support/Resistance.

We can interpret buy/sell signals by using 2 different SMA lines (one with a shorter period than the other). If the shorter SMA (e.g. a 20 day SMA) crosses upwards over the longer SMA (e.g. 50 days), it is a buy signal. The opposite, where the shorter SMA crosses downwards below the longer SMA, indicates a sell signal. Another interpretation arises when intersecting with the price. A shorter SMA crossing the price from the bottom up, while remaining above the longer SMA, is considered a buy signal, in the same way that the shorter SMA crossing the price from above downwards, while the longer SMA is located above the shorter SMA, indicates a sell signal.

### **Calculation**

$$
SMA = X Days Closing Prices Sum / X
$$

### **Parameters**

#### Input Parameters

| Name     | Type | Range of value    | Description                             |
| -------- | ---- | ----------------- | --------------------------------------- |
| `period` | int  | <1, int.MaxValue> | Number of bars used in the calculation. |

#### Output Parameters

Indicator ouptuts a single value.

| Type   | Range of value       |
| ------ | -------------------- |
| double | (0, double.MaxValue) |

### Examples

```csharp
// Prints the current value of a 20 period SMA using
// the daily bars close price value.
sma = indicators.SMA(20).OnSeries(dailyBars.Close);
Log(sma.Value.ToString());

// Prints the previous value of SMA.
sma = indicators.SMA(20).Keep(2).OnSeries(dailyBars.Close);
Log(sma.Values[1].ToString());
```

#### Complete example

```csharp
using Signals.DataSeries.Bars;
using Signals.Framework;
using Signals.Indicators.SMA;

public class MyStrategy : SingleMarketStrategy
{
    private Bars dailyBars;
    private SMA sma;

    public override void Setup(DataMarketplace data, IndicatorsMarketplace indicators)
    {
        dailyBars = data.Bars(BarPeriodType.Day, 1).WithOffset(50);
        sma = indicators.SMA(20).Keep(2).OnSeries(dailyBars.Close);
    }

    public override void RegisterActions()
    {
        OnUpdateOf(dailyBars).Do(() =>
        {
            // Prints the current SMA value
            Log("The current SMA value is " + sma.Value.ToString());

            // Prints the previous SMA value
            Log("The previous SMA value is " + sma.Values[1].ToString());
        });
    }
}
```


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