TREND INDICATOR
Simple Moving Average
A transparent average that helps frame direction and dynamic structure.
Start with the input, not the story.
The arithmetic mean of closing prices across a fixed lookback.
Plain-language formula
Add the last N closes and divide by N. Every observation has equal weight.
Platform implementations can differ in price input, smoothing, indexing and rounding. Record the exact settings and provider before comparing results.
03 / USEFUL REGIME
Where it may help
Trend definition, pullback context and a reproducible baseline.
04 / WEAK REGIME
Where it struggles
Fast reversals and choppy ranges, where repeated crosses create noise.
Add a different measurement.
ATRADX / DMIMarket structure
A complementary tool should answer a different question, such as volatility, regime or position risk. Test the base rule before testing the combination.
The shortcut to avoid
Treating a cross as a complete entry rather than one conditional input.
A testable next step
Compare 20, 50 and 200-period definitions across trend and range regimes; include spread and delayed entry.