Moving Average

A moving average is a technical indicator that calculates the average price of an asset over a defined period, smoothing out short-term fluctuations to identify trends. Common types include the Simple Moving Average (SMA) and the Exponential Moving Average (EMA), which gives more weight to recent prices. Moving averages are widely used to identify trend direction, support and resistance levels, and potential entry or exit signals. However, they are lagging indicators — they confirm trends that have already begun rather than predicting future movements. One-Signal deliberately does not use moving averages or other technical indicators in its signal methodology. Our system is based entirely on sentiment indicators — forward-looking measures of investor psychology including the VIX, put/call ratio, and sentiment surveys. This avoids the self-fulfilling and trend-following limitations of price-based technical analysis.

See our methodology: one-signal.com/performance. Not financial advice.