✓ Mathematical
◆ The PatternThe arithmetic mean of the last N closing prices.
The Simple Moving Average is the arithmetic mean of the last N closing prices.
SMA = (C₁ + C₂ + … + Cₙ) / N
Common periods: 20 (short-term), 50 (medium), 200 (long-term).
Golden Cross: 50-day SMA crosses above 200-day → bullish signal.
Death Cross: 50-day crosses below 200-day → bearish.
Death Cross: 50-day crosses below 200-day → bearish.
Limitations: equal weighting means SMA lags price — old data has the same influence as new data.
Pattern bridge: The simple moving average is the arithmetic mean on a rolling window. The same smoothing kernel powers CNN convolutions — a filter sliding across data.