#SMA , or Simple Moving Average, is a fundamental indicator used to identify the overall price direction by averaging prices over a specific time period.

The Simple Moving Average is calculated by summing up the prices of an asset over a set number of periods (e.g., days, hours, or minutes) and then dividing this sum by the total number of periods. The resulting value is the average price over that particular timeframe.

For instance, a 10-day Simple Moving Average would add up the closing prices of the last 10 days and divide this sum by 10 to determine the average price for that period.

SMA smooths out price data, providing a clearer representation of the trend. Traders often use different SMA periods to analyze short-term or long-term trends, helping them make informed decisions in the financial markets. It's a valuable tool for technical analysis and is widely used in various trading strategies.#trade