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SMA9 — Price Direction

What it is and how it is calculated​

SMA9 is a simple moving average of the last 9 candle closes on the timeframe — the plain arithmetic mean, including the candle that is still forming.

Firedrake does not show the average itself; it shows where the current price is relative to it:

ValueMeaning
UpThe current price is at or above the 9-candle average.
DownThe current price is below the 9-candle average.
—Not enough data on this timeframe yet.

In the strategy form this group is called Price Direction (SMA9).

What it is for​

SMA9 answers a simple question: is the price moving up or down right now on this timeframe? Because the average is short (9 candles), it reacts quickly and is mostly used for timing:

  • to confirm that a bounce has actually started (Up) before buying;
  • to confirm that a drop is under way (Down) before selling;
  • to avoid entering against the immediate move.

Being fast, SMA9 also flips often on low timeframes. On its own it is a weak signal; it works best as a confirmation for other indicators.

How to use it​

In the screener and in strategies you choose Up, Down or both for each timeframe. Leaving it empty means "any direction".

Typical settings​

IdeaSetting
Buy only after the bounce starts5m or 15m SMA9 = Up
Trend-following long1h SMA9 = Up and 4h SMA9 = Up
Short only while the price is falling15m SMA9 = Down

Combinations​

  • Oversold zone + SMA9 Up. An MRC Oversold zone says the price is cheap; SMA9 Up on the same or a lower timeframe says it has started to turn. Together they avoid buying while the price is still sliding.
  • SMA9 + cloud colour. SMA9 Up on 15m with a blue 1h cloud — a short-term upswing in the direction of the larger trend.
  • SMA9 against RSI. RSI below 30 with SMA9 still Down means the drop is continuing; wait for Up.

Ready-made screener filter sets: Monitoring in the Screener.