Skip to main content

SMA

Source​

https://github.com/quadcode-tech/quadcodescript-library/blob/master/averages/ma_sma.lua

Syntax Format​

sma(series, period)

Overview​

SMA (Simple Moving Average) smoothes the price data by providing the averaged price value for the chosen timeframe. Because it is the most basic Moving Average, each price value is given the same weight. You can use SMA as part of more complex indicators as well as on its own to identify potential trend reversals.

Parameters​

ParameterTypePurpose
sourceseriesInput series, taken into calculation
periodnumericMoving Average period

Returns*: series.

*If there are less than period values in the series – the result is nan.

Example​

instrument { name = "Simple Moving Average", short_name = "SMA", overlay = true, icon="indicators:MA" }

period = input (9, "period", input.integer, 1)
source = input (1, "source", input.string_selection, inputs.titles_overlay)

input_group {
    "SMA Line",
    color = input { default = "#DB4931", type = input.color },
    width = input { default = 1, type = input.line_width}
}

local sourceSeries = inputs [source]

plot (sma (sourceSeries, period), "SMA", color, width)

Formula​

The formula for calculating SMA is:

image.png

The calculation of the SMA is quite straightforward: the sum of price series over the chosen period divided by the chosen period (1, 14, 25, etc.).