Smoothed Moving Average (SMMA) Indicator Explained

The Smoothed Moving Average (SMMA) keeps a long memory: rather than dropping old bars like an SMA, it folds the entire history into each new value with gradually fading weight. It's equivalent to Wilder's RMA and is the average behind classic systems like the Alligator.

How It Works

• Each value = (previous SMMA × (N−1) + new price) / N.
• Old data never fully leaves; it just fades — giving very stable, slow-turning lines.
• An SMMA(N) tracks like an EMA of roughly double the length.

How to Trade It

SMMA is for the slow layers of a system: the 'jaw' baseline of Alligator-style stacks, higher-timeframe bias lines, and trailing reference levels. Price staying on one side of a long SMMA is one of the simplest reliable definitions of a trend.

Building It in Setup.Cash

Add Smoothed Moving Average (SMMA) in the strategy builder — the length input controls its sensitivity — and use its value in any entry, exit, or filter condition. You can also combine it with other tools in the Indicators Lab or via the AI indicator generator. The Williams Alligator is three SMMAs offset in time. For the full category overview, see the advanced trend library guide.

Trend tools reward patience: pick one, pair it with a volatility or regime filter, and backtest before trading it live.