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Indicators & Calculations ยท Lesson 1

Moving averages

Smoothing out the noise

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Moving averages

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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