Olymp Trade SMA 전략

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How Simple Moving Average Indicator works?

OlympTrade SMA Indicator

SMA Indicator on OlympTrade Platform

OlympTrade Simple Moving Average

How Simple Moving Average Indicator works?

SMA – Simple Moving Average. To begin with, OlympTrade Olymp Trade SMA 전략 SMA Indicator is pretty simple but still, you can make a profit with it. Above all, SMA is analyzing the trend and shows trader if he needs to buy or sell. The indicator itself is looks like one orange line which is showing the average direction of the market.

Where to Find SMA?

OlympTrade Simple Moving Average indicator

Simple Moving Average Indicator on Olymp Trade

In case you want to use the SMA indicator for trading on OlympTrade you will need to go to the “Indicators” menu and choose the SMA which is on the first position. You can find the “Indicators” menu at the top left side of the trading page, these two steps are shown above.

Help with SMA on OlympTrade

Know more about Simple Moving Average

Firstly, press on the little icon which is located on the right side from the indicator. After that, assistant will provide you with useful information about OlympTrade SMA Indicator. Moreover, you will also be provided with a picture where you can see an example of how an indicator works.

OlympTrade How Simple Moving Average works

Explaining the SMA on Olymptrade platform

What is more, you will be able to ask relative questions about this indicator to have more knowledge and more profit in the future. However, if you still have some questions you are welcome to ask OlympTrade 24/7 support, they will always help you with your problems.

3 Comments on “Simple Moving Average”

My name it Georgy and I’m beginner in trading. After reading this article I’m ready to try this Indicator in my daily trading.

SMA Indicator helps me a lot. I’m using it for 1,5 month already and I made a lot of money with it.

Amazing post. Do you have any other ones you can deliver? I highlyrate super stuff. I have actually tried Dux Forex as a signals provider with OlympTrade broker and they are amazing. I will keep you guys posted. 🙂

How to Trade the SMA Strategy at Olymp Trade

trading with sma

One of the indicators you will come across at Olymp Trade is the SMA. This stands for the Simple Moving Average. It is calculated by summing up the last closing prices and dividing the outcome by the number of timeframes in which these candles appeared. The purpose of using the SMA is to identify the price direction.

In this guide, I want to show you how to add the SMA to your chart and how to trade with it on the Olymp Trade platform.

Configuring the SMA on the Olymp Trade platform

The Simple Moving Average can be applied on any kind of the Olymp Trade chart. I do recommend, however, setting the Japanese candlesticks chart. It is just that this type of chart is easier to analyze, particularly in combination with the SMA.

Once you are logged into the Olymp Trade account, click on the chart type feature and choose Japanese candlesticks.

Choosing SMA from trend indicators

You will find a small pen icon close to the name of the indicator (SMA) in the top left corner of your chart’s window. Here you can adjust the period of the moving average, the color, and thickness.

Trading signals according to SMA(10)

The most important thing is to find the perfect spots to enter the positions that will bring you a profit, and not a loss. We will use the above chart to discuss this issue.

You can notice a few situations where the SMA10 was moving below the prices. At some point, it cut the bearish candle across. After that, it runs above the prices. The moment the SMA10 crosses the bearish candle is a signal the downtrend is coming so when the candle is fully developed you should enter a sell position. You may hold it between 1 and 5 minutes.

On the other hand, whenever the SMA10 runs above the prices, then cuts the bullish candle across and begins to run below the prices, it means the uptrend is developing. Now is the time to open a buy position. Again, it should last from 1 to 5 minutes.

A handful of tips on how to trade with the Simple Moving Average

The SMA is used to determine the price direction and possible reversal of the trend. But bear in mind, this indicator is subject to a delay. That’s why is not the best tool to predict future price movements. Luckily, it can be combined with some other indicators, such as the RSI or the Parabolic SAR, and then you get a much more accurate prognosis.

The period of the Simple Moving Average can be adjusted by your preferences. For trading short-lasting positions, set the indicator’s period for 10. If you would rather open trades that last over 10 minutes, increase the period Olymp Trade SMA 전략 accordingly. Remember, the higher the period, the longer the delay.

The SMA is highly efficient in the markets that can be characterized as volatile. This is the reason why it is a good idea to use this indicator when some news release is expected.

Trading with the SMA indicator at Olymp Trade is not difficult. Try it right now on your Olymp Trade practice account, while keeping in mind that the market will always have risks. Always be prepared to deal with losses.

Tell us in the comments section below how you find the Simple Moving Average at work.

Effective SMA20 strategy for derivative traders

sma20 featured image

SMA stands for a Simple Moving Average. It is widely used and it is also a user-friendly indicator on the Olymp Trade platform. SMA follows the trend and thus is of great help when looking for a good trading opportunity.

Here we will show you the basics about SMA you need to know to trade at Olymp Trade.

Configuring SMA(20)

In this guide, we will use a Japanese candlesticks chart for EURUSD, a 5-minute timeframe, as an example.

Once you log in, choose the asset and timeframe, click on the indicators feature (1). Find SMA under “Trend indicators” (2).

How to add SMA to the chart

You can change SMA settings by clicking on the pen button (1). We recommend choosing a period of 20 for this particular strategy.

Changing period and line width of SMA

How to trade with SMA(20) at Olymp Trade

Your goal while trading with SMA(20) is to find the points where the indicator’s line crosses the prices.

In the case, SMA(20) is moving above the prices, and then touches or crosses a green candle (1), you can expect the trend to continue downwards. It will be confirmed when the red candle appears (2) after the green one and the indicator stays above the prices.

In the case, SMA(20) is moving below the prices, and then touches or crosses a red candle (1), the forecast is that the uptrend will be sustained. You will get the confirmation when the green candle appears (2) after the Olymp Trade SMA 전략 red one and the indicator remains below the prices.

Look at the below charts.

Short position example Long position example

3 exemplary entry points indicated by SMA(20)

Three successful trades in a row

(1) This is the first signal from SMA(20) to enter the trade. The Simple Moving Average is placed above the prices and cuts the bullish candle. However, it crosses almost at the bottom of the candle. You need to wait for the two bearish candles and just then enter a 5-minute sell position.

(2) In the second point, SMA(20) is also moving above the prices. It cuts the bullish candle and then the bearish candle develops. The indicator remains above the prices. You can deduce the downtrend will continue so when the next bearish candle appears you should enter a 5-minute sell position.

(3) The situation here is quite similar to the second one. SMA(20) cuts the bullish candle and remains above the prices. The next candle that develops is the red one. So with the subsequent bearish candle, you should again, enter a sell position.

trend trading with SMA

As you could see in the examples above, SMA(20) is not only simple but also reliable. You need to watch carefully its relation Olymp Trade SMA 전략 Olymp Trade SMA 전략 to the prices and the result should be satisfactory.

However, SMA(20) is not the best tool to use in the markets of high volatility, when the prices change rapidly, for example, when some news cause sudden action.

SMA with a proper money management strategy

Using SMA(20) can generate a consistent profit. You can apply compounding as a capital management strategy. You can begin with 2-5% of your capital as an initial investment. In the following transactions, you trade with the initial investment plus the profit you gained earlier.

Let’s say your balance account is $1000. You invest $20 in a trade. With an 80% return, you will make $16 as a profit. Now, in the next trade, you put $36 either the first transaction was beneficial or not.

With this strategy, you will close the day at a win even making only Olymp Trade SMA 전략 3 trades per day.

money management with sma20

Psychological aspects of trading with SMA

Trading with SMA is not technically difficult. But you need to be careful because the impatience can cost you a loss. SMA(20) signals sometimes appear infrequently and you have to wait and analyze the market patiently before entering the right trade.

And if it happens, that there was a signal but you missed it, just let it go. Wait for the next opportunity, do not rush things. Because if you decided to enter the trade in such a moment anyway, you would most surely end up losing.

psychologically prepared

The last thing to do is to put your knowledge about SMA into practice. Go ahead and open a free Olymp Trade demo account, if you do not have one yet. Treat your demo account as if you’re dealing with real money, so that you will surely learn. In the real market, always be wary of losing trades. Expect the unexpected. This strategy is not risk-free.

Try for yourself how the Simple Moving Average indicator suits you and share your comments with us.

How to Profit With SMA Indicator and 5 Minute Trades at Olymp Trade

2 sma strategy

There are plenty of tools in technical analysis. One of them is called the Simple Moving Average, the SMA in short. It calculates the average price of the asset. The SMA is widely used in technical analysis, however, mind that a single moving average cannot be characterized as the most accurate tool. It does not collect many price points to calculate the average, which results in some delay. But it is enough to add one more SMA to receive a perfect tool for identifying points of the trade entry.

In this guide, I will present you with the technique of trading 5-minute positions with the SMA4 and the SMA30 at Olymp Trade.

Configuring the SMA4 and the SMA30 on the Olymp Trade platform

After logging in to the Olymp Trade account, choose the asset and set a 1-minute Japanese candlesticks chart. Hit the indicator icon and select the SMA. Then you can change the period, the width, and the color of the line by clicking a pen icon. Let’s change the period to 4.

First you need to attach 2 SMA to the chart

In the next SMA, you will Olymp Trade SMA 전략 add the same way as the first one. You will only need to change the parameters. Set the period for 30 and choose a different color, so the two lines are recognizable.

How to change period and color of SMA

How to trade 5-minute positions with a pair of the SMA indicators on the Olymp Trade platform

Everything in place - SMA 4 and 30, 1-minute chart, 5-minutes duration

When to open a 5-minute long position

Observe the SMA lines. When the SMA4 is moving below the SMA30, wait until it will cross the SMA30 and begin to move above. Then wait a little more for the SMA4 to touch the bullish candle. Now is the time to enter a long position.

Two successful trades in both directions

When to open a 5-minute short position

The SMA4 is moving above the SMA30. But at some point, it crosses the SMA30 and continues below. The best moment to enter a short position is when the SMA4 touches the first bearish candle.

Trading with the SMA4 and the SMA30 is especially beneficial on the trending markets. The volatility of the market is often increased after the release of significant news.

You have just obtained the knowledge necessary to trade 5-minutes positions with the help of the SMA4 and the SMA30 indicators. It is time to check how does it work on the Olymp Trade platform. Log into your account and practice with the demo account first. Tell us in the comments section below how to do you like this particular trading strategy.

Effective SMA20 strategy for derivative traders

sma20 featured image

SMA stands for a Simple Moving Average. It is widely used and it is also a user-friendly indicator on the Olymp Trade platform. SMA follows the trend and thus is of great help when looking for a good trading opportunity.

Here we will show you the basics about SMA you need to know to trade at Olymp Trade.

Configuring SMA(20)

In this guide, we will use a Japanese candlesticks chart for EURUSD, a 5-minute timeframe, as an example.

Once you log in, choose the asset and timeframe, click on the indicators feature (1). Find SMA under “Trend indicators” (2).

How to add SMA to the chart

You can change SMA settings by clicking on the pen button (1). We recommend choosing a period of 20 for this particular strategy.

Changing period and line width of SMA

How to trade with SMA(20) at Olymp Trade

Your goal while trading with SMA(20) is to find the points where the indicator’s line crosses the prices.

In the case, SMA(20) is moving above the prices, and then touches or crosses a green candle (1), you can expect the trend to continue downwards. It will be confirmed when the red candle appears (2) after the green one and the indicator stays above the prices.

In the case, SMA(20) is moving below the prices, and then touches or crosses a red candle (1), the forecast is that the uptrend will be sustained. You will get the confirmation when the green candle appears (2) after the red one and the indicator remains below the prices.

Look at the below charts.

Short position example Long position example

3 exemplary entry points indicated by SMA(20)

Three successful trades in a row

(1) This is the first signal from SMA(20) to enter the trade. The Simple Moving Average is placed above the prices and cuts the bullish candle. However, it crosses almost at the bottom of the candle. You need to wait for the two bearish candles and just then enter a 5-minute sell position.

(2) In the second point, SMA(20) is also moving above the prices. It cuts the bullish candle and then the bearish candle develops. The indicator remains above the prices. You can deduce the downtrend will continue so when the next bearish candle appears you should enter a 5-minute sell position.

(3) The situation here is quite similar to the second one. SMA(20) cuts the bullish candle and remains above the prices. The next candle that develops is the red one. So with the subsequent bearish candle, you should again, enter a sell position.

trend trading with SMA

As you could see in the examples above, SMA(20) is not only simple but also reliable. You need to watch carefully its relation to the prices and the result should be satisfactory.

However, SMA(20) is not the best tool to use in the markets of high volatility, when the prices change rapidly, for example, when some news cause sudden action.

SMA with a proper money management strategy

Using SMA(20) can generate a consistent profit. You can apply compounding as a capital management strategy. You can begin with 2-5% of your capital as an initial investment. In the following transactions, you trade with the initial investment plus the profit you gained earlier.

Let’s say your balance account is $1000. You invest $20 in a trade. With an 80% return, you will make $16 as a profit. Now, in the next trade, you put $36 either the first transaction was beneficial or not.

With this strategy, you will close the day at a win even making only 3 trades per day.

money management with sma20

Psychological aspects of trading with SMA

Trading with SMA is not technically difficult. But you need to be careful because the impatience can cost you a loss. SMA(20) signals sometimes appear infrequently and you have to wait and analyze the market patiently before entering the right trade.

And if it happens, that there was a signal but you missed it, just let Olymp Trade SMA 전략 it go. Wait for the next opportunity, do not rush things. Because if you decided to enter the trade in such a moment anyway, you would most surely end up losing.

psychologically prepared

The last thing to do is to put your knowledge about SMA into practice. Go ahead and open a free Olymp Trade demo account, if you do not have one yet. Treat your demo account as if you’re dealing with real money, so that you will surely learn. In the real market, always be wary of losing trades. Expect the unexpected. This strategy is not risk-free.

Try for yourself how the Simple Moving Average indicator suits you and share your comments with us.


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