TradingCharts

Smoothed Moving Average

Use it as a long-horizon trend filter: price above a rising SMMA defines a bull regime, below a falling one a bear regime, with fewer flips than an SMA of the same length.

What it does

The Smoothed Moving Average (SMMA, also called RMA or Wilder's MA) is an exponentially weighted average that carries the entire price history with a very gentle decay: each value equals (previous SMMA * (n-1) + current price) / n. It behaves like an EMA of roughly double the length, producing a much smoother, slower line than an SMA of the same period. Wilder used this smoothing inside RSI, ATR and ADX.

Typeoverlaydraws on the price chart

How to add it

Click Indicators (ƒx) in the header.

Search “Smoothed Moving Average” and click the result.

Hover its legend row and click the gear to open settings.

How traders use it

  • Use it as a long-horizon trend filter: price above a rising SMMA defines a bull regime, below a falling one a bear regime, with fewer flips than an SMA of the same length.
  • Because it ignores minor noise, pullbacks that touch a long SMMA (e.g., 50 or 100) mark deeper, higher-quality trend entries.
  • Crossovers of two SMMAs generate rare but durable signals suited to position trading rather than scalping.
  • It works well as a wide trailing stop line for riding extended trends without being shaken out.
  • Remember its equivalence: a 14 SMMA behaves like a 27 EMA, so choose lengths accordingly when converting systems.

Inputs

Input Type Default Range / Options
Length number 7 1–500
Source select close Close / Open / High / Low / HL2 / HLC3 / OHLC4
Offset number 0 -500–500

Plots & styling

Plot Style Default color
SMMA(7) line #673AB7

Every plot's color, line width and visibility can be changed on the Style tab. Precision, price-scale labels and status-line values are configurable at the bottom of the Style tab.

Tips

  • Drag the indicator to its own pane from the legend ⋯ menu if it crowds the price chart.
  • Double-click any of its lines to jump straight into the settings dialog.
  • Save the configured chart as a study template (Indicators menu) to reapply this exact setup elsewhere.

Watch out for

  • Its heavy smoothing means substantial lag; it confirms reversals very late and is unsuitable for fast tactical signals.
  • In prolonged ranges it flattens through the middle of the action and provides little guidance.