# Simple Moving Average (SMA)

> Plots the plain average of the last N closing prices as a line on the price chart.

Updated: 2026-10-25T00:01:52.000Z · https://chartrider.com/docs/indicators/sma/

## What you see
A single line on the price chart. Each point is the average close of the last `Period` candles, the current candle included. The line starts on the `Period`-th loaded candle; before that there is no value.

## How it is calculated
`SMA = (sum of the last N closes) / N`, with N = Period.

Every close in the window has the same weight. With each new candle the oldest close drops out of the window and the newest one comes in.

## How to read it
- Price above a rising SMA points to an uptrend, price below a falling SMA to a downtrend. A flat SMA that price keeps crossing signals a range.
- A longer period gives a smoother line that reacts later; a shorter period follows price closely but produces more false signals.
- Two SMAs with different periods are often combined: the short one crossing the long one marks a shift in momentum.
- Because old and new prices count equally, the SMA lags more than an [EMA](https://chartrider.com/docs/indicators/ema/) of the same period.

## Using it in strategies
The SMA has one output, `value` (a price). In the [Trade Setup](https://chartrider.com/docs/strategies/trade-setup/) you can use it with the rule "Price vs line", for example as a filter that allows longs only while the close is above the line, or with "Compare" against another moving average. In [WickScript](https://chartrider.com/docs/wickscript/) use the built-in `sma(source, length)`, e.g. `sma(close, 50)`, or load this indicator with `use indicator "SMA" with period 50 as slow` and read `slow.value`.

## Settings

Open the settings with the slider icon next to the indicator (Indicators, `F3`). Numeric settings can be swept as Step 1 / Step 2 parameters when you run a strategy.

### Inputs

| Setting | Type | Default | Description |
|---|---|---|---|
| Period | Number | `21` | Number of candles averaged (N). The average uses the close of each candle. (min 1) |

### Styles

| Setting | Type | Default | Description |
|---|---|---|---|
| Line Color | Color | `#88ff88` |  |

## Outputs

These values can be used in Trade Setup triggers, filters and exits (see [Trade Setup](https://chartrider.com/docs/strategies/trade-setup/)) and in WickScript.

| Output | In WickScript | Description |
|---|---|---|
| value | `value` |  |

## Use in WickScript

`use indicator` creates this indicator inside a script, with settings by their ID. Each output is a field of the name after `as`. See [WickScript indicators](https://chartrider.com/docs/wickscript/indicators/).

```wickscript
wickscript 1
indicator "Simple Moving Average (SMA) from the list" on chart
use indicator "SMA" with period 21 as mySma
show mySma.value as line "value"
```