Calculate a simple moving average and the smoothing it provides.
A simple moving average weights every period in the window equally, which makes it lag the series by about half the window length. Comparing a short and long average is the standard way to identify trend direction. That inherent lag is why moving-average crossovers signal trends only after they are well established.
Moving Average
SMA = Σ of the last n values ÷ n; the average lags the series by (n − 1) ÷ 2 periods
SMA = Σ of the last n values ÷ n; the average lags the series by (n − 1) ÷ 2 periods A simple moving average weights every period in the window equally, which makes it lag the series by about half the window length. Comparing a short and long average is the standard way to identify trend direction.
That inherent lag is why moving-average crossovers signal trends only after they are well established.
This calculator takes 5 inputs: Most recent period, Previous period, Two periods ago, Three periods ago, Four periods ago. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.