> For the complete documentation index, see [llms.txt](https://help.quantower.com/quantower/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.quantower.com/quantower/analytics-panels/chart/technical-indicators/moving-averages/simple-moving-average.md). # Simple Moving Average (SMA) Indicator Add the Simple Moving Average (SMA) in Quantower to smooth price data and identify the underlying trend across any timeframe ### What is Simple Moving Average (SMA) Indicator? Moving averages are one of the core indicators in technical analysis, and there are a variety of different versions. SMA is the easiest moving average to construct. It is simply the average price over the specified period. The average is called "moving" because it is plotted on the chart bar by bar, forming a line that moves along the chart as the average value changes. In trading practice commonly uses a combination of moving averages, combined together to the one group. This group then uses to determine a trend. ![Two Simple moving averages (20 and 50 periods)](https://4186075531-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-LD6FsRvQ3jgwJIg6O7r%2F-MUrLhRHJcUqE-Z8u0Pr%2F-MUrNpnv-c4EdRUohHTq%2Fimage.png?alt=media\&token=7982ccd1-82f4-475b-bbef-7df80666110b) 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://4186075531-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-LD6FsRvQ3jgwJIg6O7r%2F-LEJgTBixsOJvvUPS6cD%2F-LEJo6HYIGkVc7gvd_we%2Fimage.png?alt=media\&token=06e50fff-f1f7-41e2-9f0b-042e27110d2a) --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://help.quantower.com/quantower/analytics-panels/chart/technical-indicators/moving-averages/simple-moving-average.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. 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.