> ## Documentation Index
> Fetch the complete documentation index at: https://learn.algopilot.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Relative Moving Average (RMA)

**What is it?**\
A Rolling Moving Average (RMA) is a smoothed moving average that gives more weight to recent prices, similar to an EMA but calculated differently. It’s great for spotting trends in volatile markets like crypto.

**How is it used?**

* **Trend following**: An upward RMA indicates a bullish trend; a downward RMA indicates bearish.
* **Crossovers**: A short RMA crossing above a long RMA signals a buy; crossing below signals a sell.
* **Support/resistance**: Prices often respect the RMA as a dynamic level.

**How is it calculated?**\
The RMA is essentially a Wilder's Moving Average:

RMA = (Previous RMA × (n-1) + Current Price) / n  

Where n is the period. It’s similar to an EMA but uses a simpler smoothing method.

<sub>The above content is designed for informational purposes only, and is explicitly not investment advice. Algo Pilot is a US based technology company and not a bank, broker-dealer, or RIA. As such, Algo Pilot LLC does not provide investment advice and is not a member, SIPC. Brokerage services offered by 3rd parties are not directly affiliated with Algo Pilot LLC, and Algo Pilot users may choose the broker relationship that they desire.</sub>