Indicators & Calculations ยท Lesson 1
Moving averages
Smoothing out the noise
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In this lesson
Calculate a simple moving average by hand, read it on a chart, and understand crossovers.
Key takeaways
- A simple moving average (SMA) is the average of the last N closing prices.
- Price above a rising average suggests an uptrend; below a falling one, a downtrend.
- A fast average crossing above a slow one (golden cross) signals momentum turning up.
- Averages lag and give false signals in sideways markets.
Watch this lesson with Tessa. The full video, worked example, calculator, quiz and Ask Tessa are part of Money Globe X Silver, Gold and Platinum. Create your account to start learning.
Next lesson: RSI
Educational information only - not financial advice.
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