A Simple Moving Average (SMA) chart displays price or value data with one or more SMA overlays, typically showing short, medium, and long-term periods (e.g., 20, 50, 200-day). Each SMA line smooths out price fluctuations by averaging the last N data points, revealing underlying trends at different time scales. This multi-period overlay is fundamental to technical analysis, helping traders identify trend direction, support/resistance levels, and potential crossover signals.
