Glossary/
Technical

Simple Moving Average (SMA)

Definition

An arithmetic average of a security's price over a specified number of periods. Used to smooth out price data and identify trends.

Example

The SMA(50) is the average closing price over the last 50 trading days. When price crosses above SMA(200), it's often called a 'golden cross'.

How Gilito AI Uses It

SMA is one of the most common indicators in Gilito strategies. SMA crossovers, price-above-SMA conditions, and SMA slope are frequently used as entry/exit signals.

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