Compact mode
Simple Moving Average (SMA) vs Average True Range (ATR) vs Momentum Indicator
Table of content
General Information Comparison
Indicator Type 📊
The category or classification of the trading indicator based on its primary function and analysis method.Simple Moving Average (SMA)- TrendSimple Moving Average (SMA) is a Trend type indicator. Indicators that help identify and confirm market trends
Average True Range (ATR)Momentum IndicatorAsset Class 💰
Specifies the financial instruments for which the indicator is most commonly usedFor all*- StocksIndicators optimized for analyzing and predicting stock price movements in equity markets.
- ForexIndicators optimized for currency pair trading in the foreign exchange market.
Simple Moving Average (SMA)Average True Range (ATR)Momentum IndicatorKnown for 💭
The unique selling point or distinguishing feature of the trading indicatorSimple Moving Average (SMA)- Smooth Price MovementsSimple Moving Average (SMA) is known for Smooth Price Movements.
Average True Range (ATR)- Volatility Without DirectionAverage True Range (ATR) is known for Volatility Without Direction.
Momentum Indicator- Price VelocityMomentum Indicator is known for Price Velocity.
Made In 🌍
The country or origin of the trading indicatorSimple Moving Average (SMA)- United StatesSimple Moving Average (SMA) was developed in United States. Indicators developed in the USA, reflecting American trading principles
Average True Range (ATR)- 1978Average True Range (ATR) was developed in 1978. Trading indicators specifically developed in 1978
Momentum Indicator- United StatesMomentum Indicator was developed in United States. Indicators developed in the USA, reflecting American trading principles
Characteristics Comparison
Lagging or Leading 🏁
Indicates whether the trading indicator is a lagging or leading type, reflecting its predictive nature.Simple Moving Average (SMA)- LaggingSimple Moving Average (SMA) is a Lagging indicator. Indicators that confirm trends after they have started
Average True Range (ATR)- LaggingAverage True Range (ATR) is a Lagging indicator. Indicators that confirm trends after they have started
Momentum IndicatorComplexity Level 🧑
Indicates the level of expertise required to effectively use the indicatorFor all*Popularity 🏆
Indicates how widely used and recognized the indicator is in the trading communitySimple Moving Average (SMA)- HighThe popularity of Simple Moving Average (SMA) among traders is considered High. Widely used and trusted indicators in the trading community
Average True Range (ATR)- MediumThe popularity of Average True Range (ATR) among traders is considered Medium. Indicators with balanced adoption and potential effectiveness
Momentum Indicator- MediumThe popularity of Momentum Indicator among traders is considered Medium. Indicators with balanced adoption and potential effectiveness
Facts Comparison
Interesting Fact 💡
An intriguing or lesser-known fact about the trading indicatorSimple Moving Average (SMA)- Oldest and most basic technical indicator
Average True Range (ATR)- Part of Welles Wilder's indicators
Momentum Indicator- Often confused with the Rate of Change (ROC) indicator
Sarcastic Fact 😉
A humorous or ironic observation about the trading indicatorSimple Moving Average (SMA)- Even your grandma could calculate it
Average True Range (ATR)- It's the drama meter of the market - higher values mean more excitement
Momentum Indicator- Jokingly referred to as the "lazy trader's best friend" due to its simplicity
Application Comparison
Timeframe 🕑
The time intervals or periods for which the trading indicator is most effective or commonly used.For all*- DailyIndicators optimized for daily chart analysis, suitable for swing and position traders.
Average True Range (ATR)- WeeklyAverage True Range (ATR) is most effective for Weekly timeframes. Indicators optimized for weekly chart analysis, balancing short-term noise and long-term trends.
Momentum Indicator- WeeklyMomentum Indicator is most effective for Weekly timeframes. Indicators optimized for weekly chart analysis, balancing short-term noise and long-term trends.
Technical Details Comparison
Calculation Method 🧮
The mathematical or analytical approach used to compute the trading indicator's values.Simple Moving Average (SMA)Average True Range (ATR)Momentum IndicatorSignal Generation 📊
Describes the methods by which the indicator produces trading signalsSimple Moving Average (SMA)- CrossoversSimple Moving Average (SMA) generates trading signals through Crossovers. Indicators that generate signals when one line crosses another, indicating trend changes
Average True Range (ATR)- ThresholdsAverage True Range (ATR) generates trading signals through Thresholds. Indicators that generate signals when certain predefined levels or conditions are met
Momentum Indicator- CrossoversMomentum Indicator generates trading signals through Crossovers. Indicators that generate signals when one line crosses another, indicating trend changes
- DivergencesMomentum Indicator generates trading signals through Divergences. Indicators that show discrepancies between price and indicator movements, suggesting potential reversals
Customization Options 🔧
Lists the parameters that can be adjusted to fine-tune the indicatorFor all*
Usage Comparison
For whom 👥
The target audience or user group for the trading indicatorSimple Moving Average (SMA)- BeginnersSimple Moving Average (SMA) is designed for Beginners. Simple and easy-to-understand tools for novice traders Click to see all.
- Long-Term InvestorsSimple Moving Average (SMA) is designed for Long-Term Investors. Emphasizes long-term trends and fundamental analysis, suited for buy-and-hold strategies Click to see all.
Average True Range (ATR)Momentum IndicatorPurpose 📈
The primary purpose or application of the trading indicatorSimple Moving Average (SMA)- Trend IdentificationSimple Moving Average (SMA) is primarily used for Trend Identification. Tools that help traders recognize and confirm established market trends Click to see all.
- Support And ResistanceSimple Moving Average (SMA) is primarily used for Support And Resistance. Indicators that identify key price levels where trends may pause or reverse Click to see all.
Average True Range (ATR)Momentum Indicator
Evaluation Comparison
Pros 👍
Advantages of using the trading indicatorSimple Moving Average (SMA)- Easy To UnderstandIndicators with straightforward concepts and interpretations
- Widely UsedPopular indicators trusted by many traders for market analysis
Average True Range (ATR)- Useful For Position Sizing
- Helps Set Stop-Losses
Momentum Indicator- Simple And Straightforward
- Helps Identify Potential Reversals
Cons 👎
Disadvantages or limitations of the trading indicatorSimple Moving Average (SMA)- Lag In Fast-Moving Markets
- May Miss Sudden Price ChangesIndicates that some indicators might not capture rapid market movements effectively. Click to see all.
Average True Range (ATR)Momentum Indicator
Performance Metrics Comparison
Reliability Score 💯
A score indicating the overall reliability of the trading indicatorSimple Moving Average (SMA)Average True Range (ATR)Momentum IndicatorEase of Use Score 💻
A score representing how user-friendly and intuitive the trading indicator isSimple Moving Average (SMA)Average True Range (ATR)Momentum IndicatorVersatility Score 🔀
A score indicating the adaptability of the trading indicator across different markets and timeframesFor all*Customization Score 🔧
A score representing the degree of customization available for the trading indicatorSimple Moving Average (SMA)- 6The customization score for Simple Moving Average (SMA) is 6 out of 10.
Average True Range (ATR)- 6.5The customization score for Average True Range (ATR) is 6.5 out of 10.
Momentum Indicator- 6The customization score for Momentum Indicator is 6 out of 10.
Score ⭐
The overall score of the trading indicator based on various performance metricsSimple Moving Average (SMA)Average True Range (ATR)Momentum Indicator
Alternatives to Simple Moving Average (SMA)
Exponential Moving Average (EMA)
Known for Smooth Price Movements
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is more customizable than Simple Moving Average (SMA)
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is rated higher overall than Simple Moving Average (SMA)
Directional Movement Index (DMI)
Known for Strength Of Price Movement
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is more versatile than Simple Moving Average (SMA)
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is more customizable than Simple Moving Average (SMA)
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is rated higher overall than Simple Moving Average (SMA)
Moving Average Envelope
Known for Price Range Visualization
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is more customizable than Simple Moving Average (SMA)
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is rated higher overall than Simple Moving Average (SMA)
Rainbow Moving Average
Known for Visual Representation Of Multiple Timeframes
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is more versatile than Simple Moving Average (SMA)
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is more customizable than Simple Moving Average (SMA)
Alligator Indicator
Known for Identifying Market Sleep And Awakening
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is more customizable than Simple Moving Average (SMA)
Moving Average Convergence Divergence (MACD)
Known for Trend Strength And Direction
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is more versatile than Simple Moving Average (SMA)
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is more customizable than Simple Moving Average (SMA)
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is rated higher overall than Simple Moving Average (SMA)
Elder Triple Screen
Known for Trend-Momentum Alignment
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is more versatile than Simple Moving Average (SMA)
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is more customizable than Simple Moving Average (SMA)
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is rated higher overall than Simple Moving Average (SMA)
Average Directional Index (ADX)
Known for Trend Strength Without Direction
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is more customizable than Simple Moving Average (SMA)