Smoothed Moving Average on a Live Gold Chart

What it shows

Next to an EMA of the same length it looks almost lazy, bending wide around short pullbacks.

How Pravex works it out

The first value is the plain average of the first N values of the source, the close by default.
After that each value is (1 ÷ N) × the new price + (1 − 1 ÷ N) × the previous value. At the default length of 7 the new close brings in 1/7 and the old line keeps 6/7.
Example numbers, not a live price: a previous value of 100 and a new close of 114 at length 7 give 100 + (114 − 100) ÷ 7 = 102.
This is the same recipe as an EMA with alpha = 1 ÷ N instead of 2 ÷ (N + 1), so at equal lengths it is about half as quick.

Settings

Setting	Default	What changing it does
Length	7	Sets the step size 1 ÷ N. A longer length makes the line flatter and slower; a shorter one lets it follow price more closely.
Source	close	The price that is blended in, 1/7 at a time by default. Because each step is so small, swapping the close for hl2 changes this line less than it would a fast average.

How traders read it

Used as a trend filter, the SMMA gives a steadier picture than quicker averages. Price staying on one side of it for a long run says the direction has held without much fuss.

It is also handy as a base for other tools. The same smoothing runs inside Pravex’s RSI, ATR and the ADX, so seeing it drawn on price helps you picture what those indicators are doing under the hood.

When it misleads

The smoothness costs time. At the same length the SMMA reacts about half as fast as an EMA, so it can still point the old way for many candles after gold has turned. Seed values matter too: the line starts from the average of the first N candles on the chart, so the early part depends on how much history is loaded. It has no offset or extra smoothing options.

Questions and answers

Why is the SMMA slower than an EMA of the same length?

Both blend each new close into a running value. The EMA uses a weight of 2 ÷ (N + 1) and the SMMA uses 1 ÷ N, so at the same length the SMMA is slower and smoother.

Is SMMA the same as RMA?

Yes. Pravex lists it as Smoothed Moving Average, and the smoothing option elsewhere reads SMMA (RMA). It is the Wilder-style average used inside RSI and ATR.

What EMA length matches an SMMA of 7?

An EMA of 13. Its alpha is 2 ÷ 14 = 1/7, the same step the SMMA takes at 7. In general an SMMA of N moves like an EMA of 2N − 1.

Why does the early part of the SMMA look off?

It is seeded from a plain average of the first seven candles loaded, and each later step keeps 6/7 of the old value, so that seed fades slowly. Scroll further back to load more history and the recent stretch settles.