How to use SMA Indicator to Pick Trends in Expert Option

What is the simple moving average (SMA)?

A simple moving average is an arithmetic moving average which is calculated by adding recent prices and dividing it by the number of periods in the calculation average.

Benefits of the SMA indicator in expert option.

1. It averages price data.
2. Reveals trend.
3. Tracks the chart.
4. smoothing out random price fluctuation.
5. It also shows the direction in which assets value is moving.

Also Read: – ExpertOption Review 2020 | Is it a Scam or Legit Broker? Let’s Find Out.

How to activate SMA indicator in expert option.

Login to expert option if you already have a trading account.

If you don’t have one, create it here. You will get $1,000 virtual cash for practice.

1. Now, locate and click on the indicator tool.
2. Move your cursor to moving averages then click on Apply to activate SMA.

How to set SMA indicator in expert option

First, change the SMA period from 10 to 60.

By changing the period it decreases the number of signals and increases accuracy.

In expert option the larger the period the slower the SMA indicator thus more accurate but fewer signals.

On the other hand, if the period is smaller, the SMA indicator becomes faster thus giving more signals which are less accurate.

You can also maintain the standard period at 10 if you don’t want to go through all that trouble.

How not to lose money while trading with SMA in expert option

Instead of using one SMA line on your expert option chart, use two.

1. Use the first line with the standard period 10 (or 60 if you changed it).

You can also change the color of this line to blue to differentiate it from the second line.

2. Now activate your second SMA and set  to period 4

If you don’t like the standard color change it to green.

NOTE: The green line(set at period 4) will be faster than the blue line set at period 10

How to open a winning up trade with SMA.

Track the SMA indicators closely.

If the red SMA line( set at period 4) intersects the blue line (set at period 10), bottom-up, open an up trade.

The intersection between the green and the blue line is our signal to trade.

How to open a winning down trade with SMA

Track the SMA indicators closely

If the green SMA line( set at period 4) intersects the blue line (set at period 10), top-down open a down trade.

The intersection between the green and the blue line is our signal to trade.