SMA or Simple moving average is one of the most widely used trading indicators that can be used to identify upcoming trends and reversals. This indicator can also be used in multiple ways however, the two most popular methods of using this indicator are
- Solo SMA or Single simple moving average
- Double SMA or Combination of two moving averages
In my last article, I have already covered how to use the solo SMA. In case, you haven’t read it yet click here. In this article, I will use the combination or the crossover of two simple moving averages that you can use to place high-quality trades or even 1-minute trades.
How to add the two Simple Moving averages on Binomo?
In order to add two Simple moving averages on Binomo. Firstly, log in to your Binomo account. In case, you don’t have a Binomo account fill out the form below.
Secondly, click on the indicator button and click the moving average from the list.
Now, adjust the period of the first moving average to 15 and select your desired colour.
Similarly, click on the indicator button again and adjust the time frame of the moving average to 31. make sure to select a different colour for better visibility.
How to trade with SMA crossover strategy?
SMA crossover strategy is a trading strategy that uses two SMA lines to generate buy and sell signals. The two lines used in the SMA crossover are a short-term SMA line and a long-term SMA line.
When the short-period SMA line (period 15) intersects above the long-period (period 31) SMA line, it signals a potential uptrend. and here we can place a buy trade.
Similarly, when the short-period SMA line intersects below the long-period SMA line, it signals a potential downtrend and here we can place a sell trade.
How to place 1-minute Trades using SMA Indicator?
In order to place 1-minute trades using SMA Indicator. you need to first configure the SMA indicator with the short period. In this article, I will use period 5 and 11.
When the 5-period SMA line intersects above the 11-period SMA line. It signals an upcoming bullish trend and here we can place 1-minute buy trade.
Similarly, When the 5-period SMA line intersects below the 11-period SMA line. It signals an upcoming bearish trend and here we can place a 1-minute sell trade.
Try the above strategy on the Binomo demo account for free. Sign up using this link and 10,000 virtual chips plus a 100% welcome bonus.