# Simple moving average ## Description A Simple moving average is a trend following indicator that calculates as a mathematical mean of price smoothed on selected period of time. In trading practice commonly uses a combination of moving averages, combined together to the one group. This group then uses to determine a trend. ![](https://1239679454-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-LYX3ccu0Q61og0sdCbP%2F-Lt4f5XUyWUbILd7oY_y%2F-Lt4f9GEG_ojThHIgUhz%2Fimage%20\(15\).png?generation=1573126975265225\&alt=media) ## Formula ![](https://1239679454-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-LYX3ccu0Q61og0sdCbP%2F-Lt4f5XUyWUbILd7oY_y%2F-Lt4f9GH8-x9yx4wsluf%2Fimage%20\(13\).png?generation=1573126974245202\&alt=media) ## Most useful cases * **Trend following** - group of SMA allows you to determing a new wave of trend or correction. Also it gives you information about the strenght of current trend wave, to do it trader needs to look at the distance between every SMA *\*\** ![](https://1239679454-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-LYX3ccu0Q61og0sdCbP%2F-Lt4f5XUyWUbILd7oY_y%2F-Lt4f9GJIObnlrWkrECi%2Fimage%20\(24\).png?generation=1573126975768548\&alt=media) --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://help.quantower.in/analytics-panels/chart/technical-indicators/moving-averages/simple-moving-average.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.