Moving Average Smoothed
Indicator Type: Overlay (Main Window)
Chart Type: Interactive Charts Only
A Smoothed Moving Average is an Exponential Moving Average, only with a longer period applied. The Smoothed Moving Average gives the recent prices an equal weighting to the historic ones. The calculation does not refer to a fixed period, but rather takes all available data series into account. This is achieved by subtracting yesterday’s Smoothed Moving Average from today’s price. Adding this result to yesterday’s Smoothed Moving Average, results in today’s Moving Average.
A moving average is the average price of a contract over the previous n-period closes. For example, a 9-period moving average is the average of the closing prices for the past 9 periods, including the current period. For intra-day data the current price is used in place of the closing price.
The moving average is used to observe price changes. The effect of the moving average is to smooth the price movement so that the longer term trend becomes less volatile and therefore more obvious. When the price rises above the moving average, it indicates that investors are becoming bullish on the commodity. When the prices falls below, it indicates a bearish commodity. As well, when a moving average crosses below a longer term moving average, the study indicates a down turn in the market. When a short term moving average crosses above a longer term moving average, this indicates an upswing in the market. The longer the period of the moving average, the smoother the price movement is. Longer moving averages are used to isolate long term trends.
Sample Chart:

Parameters
- Period (9) - The number of bars in a chart. If the chart displays daily data, then period
denotes days; in weekly charts, the period will stand for weeks, and so on.
- Source (Close) - valid options are Open, High, Low, Close, HL/2, HLC/3, OHLC/4, HLCC/4
- Offset (0) - the number of bars to displace the moving average