A simple moving average (SMA) is formed by calculating the average price of an instrument over a specific number of periods. Most moving averages are based on closing prices. As its name suggests, a moving average is an average that moves. Old data is wipped out as new data comes available. This causes the average to move along the time scale. There is another popular moving average calculating - exponential moving average (EMA). This page presents simple moving average 20 (SMA20) for Gold, meaning - there are 20 data points on which the SMA20 is based on. Using this indicator will assist you in trading the Gold pair.