> ## 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.

# Simple Moving Average (SMA)

**What is it?**\
The Simple Moving Average (SMA) is the average price over a set period, giving equal weight to all prices. It’s a straightforward way to smooth price data and spot trends.

**How is it used?**

* **Trend direction**: An upward SMA signals a bullish trend; a downward SMA signals bearish.
* **Crossovers**: A short SMA (e.g., 50) crossing above a long SMA (e.g., 200) is a “golden cross” (buy); crossing below is a “death cross” (sell).
* **Support/resistance**: SMAs often act as dynamic support or resistance.

**How is it calculated?**

SMA = (Price1 + Price2 + ... + Pricen) / n  

Where n is the period (e.g., 50).

<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>