This is a simple indicator type that is trusted by professional traders. Furthermore, SMA is famous for its reliability in identifying market trends.
SMA is calculated by summing the closing prices in an X period and only for X. What is SMA indicator?
The accuracy of SMA indicator depends on the time period. When the time period is long and there are few signals, the accuracy is high.
On the contrary, when the time period is short and there are a lot of signals, the accuracy is low. For instance, below are some common SMA that are most used for market analysis.
It analyzes short-term fluctuations of the market. Hence, SMA30 analyzes medium-term fluctuations of the market.
As a result, it analyzes long-term market fluctuations. How does SMA indicator work?
You can use SMA indicator to identify price trends. You can customize this parameter to suit your own IQ Option trading strategies. Therefore, with each market trend, we have different trading techniques. When combining with SMA trend line, it will give long-time safe entry points.
The expiration time is 15 minutes or more. Thus, we will focus on observing the intersection of price and SMA If the market creates reliable candlestick patterns, open short-time options. The expiration time is 5 minutes or more. We will introduce and do live trade in the strategy articles on this website.