GlossaryAdvanced
Smoothed Moving Average (SMMA / RMA)
A moving average that incorporates all historical data with gradually diminishing weight, the smoothing method used internally by RSI and ATR.
A Smoothed Moving Average (SMMA, also called RMA, after its originator J. Welles Wilder) incorporates all historical price data into its calculation, with the influence of older data diminishing gradually rather than dropping out of the window entirely the way an SMA's does.
This specific smoothing method, often called Wilder's smoothing, is the calculation used internally within several well-known indicators, including RSI and ATR, rather than being commonly plotted as a standalone line on its own. See Kaavon's dedicated Smoothed Moving Average article for the full calculation.
Examples
- RSI's own internal averaging of gains and losses uses Wilder's smoothing (SMMA/RMA), not a standard SMA or EMA.
- An SMMA's influence from very old data never fully disappears, unlike an SMA, which drops a price entirely once it exits the calculation window.