Trade effectively with Simple Moving Average Strategy on Expert Option
SMA or Simple Moving Average is one of the basic trading indicators that can help you to identify the upcoming bullish or bearish trend. In my last article, I have already explained the basics of Simple moving average and how you can use them solely. If you haven’t read the article yet click here.
If you are in the field of trading for a while, you must have understood the importance of the moving averages as in almost all the indicators you will find the presence of the moving average. Using a solo SMA for the identification of trends is never a good idea, therefore. In this article, I will combine two SMA of periods 15 and 31
- Simple moving averages calculate the average price of the security usually the average closing price.
- The indicator oscillates around the price and their intersection generates buy and sell opportunities.
- In order to calculate the simple moving average, add up the closing prices of a security over a specified number of periods and then divide it the number of periods.
- The SMA indicator moves out price fluctuations that allow traders and investors to find long-term trading signals.
- Simple Moving Average is also known as a lagging indicator because it is based on historical prices.
How to configure 15 and 31 Simple Moving Averages on Expert Option
Follow the steps below to configure the indicator on Expert Option.
- Firstly, you need to sign in to your Expert Option trading account. In case, you don’t have an Expert option trading account click here.
- Once, you have signed up. you will land on the Expert Option trading dashboard.
- Now, click on the indicator button and search for the SMA indicator in the list.
- Click the name, and change the period of the indicator to 15 and 31.
Please buy trade with green domination
When line 15 cuts line 31 from the bottom and later stays above the same it is an indication of an upcoming bullish trend and here we can place a buy trade.
Place sell trade with red domination
Similarly, when line 15 cuts line 31 from the top and later stay below the same it is an indication of an upcoming bearish trend and here we can place a sell trade.
Trading with the SMA ( Simple Moving Average) indicator is very easy. All you need to do is focus on the intersection points. The best thing you can do is to practice trading the Simple Moving Indicator and keep on tracking record of the number of trades you have actually made correctly and then check how this indicator reacts for you. So, just go and try the indicator on the Expert Option account.