# Simple Moving Average

HTS's **Simple Moving Average (SMA) Indicator** calculates averages by adding the closing price of the coin for a user-defined number of time periods and then dividing this total by the number of time periods.

## Contents

## HTS 3.0 Interface

## Formula

**Simple Moving Average** is an indicator with the following formula:

`SMA = Pm + Pm-1 + ... + Pm - (n- 1) / n`

## Settings

- Exchange Website to monitor (Pro Tip: It doesn't have to be the same exchange you are currently trading on).
- Currency Pair to monitor for trade signals.
- Update Speed
- Trade Signals
- Short MA Length - How many data points (prices) to use in the calculation. Represented by the blue line on the chart.
- Long MA Length - How many data points (prices) to use in the calculation. Represented by the amber line on the chart.

## Usage

The moving average based indicators like this one work well when evaluating data over a long period of time. This is because the longer the timeline, the more accurate the average gets.

Moving averages perform best when there is a lot of volatility (meaning an overall uptrend or an overall downtrend). When prices are stable there is not enough movement, causing the moving averages to become too sensitive. In this situation too many buy and sell signals will be produced.

A moving average is recommended with an update speed of at least 20 minutes. Some common time intervals used with SMA are between 20 minutes and 3 hours.

The moving averages work best with mainstream crypto coins like BTC, LTC, and ETH.