SMA is one of the basic and effective indicators that Olymp Trade offers. You can easily find the same in the Olymp trade trend section. Almost all the trend indicators are made from the composition of SMA which makes it a really important indicator. However, you need to mind that a single moving average cannot be characterised as a powerful indicator you need to combine it with one more SMA to get good trades.
Here, In this article, I will combine SMA 5 and SMA 25 that will help you make short term trades.
How to combine SMA 5 and SMA 25 on the Olymp Trade platform
Login to your Olymp Trade account and make sure to set the default chart to candlestick and set the timer to 10 minutes.
Next, click on the indicator button and select SMA from the menu.
Lastly, click on the pencil icon and change the timer of the indicator with 5 and 25. You can also change the colour for better visibility.
The best time to place a buy trade
When the SMA 5 is below the SMA 25. and later the SMA 5 crossover the SMA 25 and begin to move up in an uptrend is the best time to open a buy trade.
The best time to place a sell trade
When the SMA 5 is above SMA 25 and later the SMA 5 crossover the SMA 25 and continues below the SMA 25 in a downward direction It signals a bearish trend and is the best time to open a sell trade.
Trading with the SMA indicator is so easy. You just need to focus on the crossover of the two lines. I hope you have understood the concept and it’s now your turn to try this indicator on your Olymp Trade demo account. and do comment below in the comment section If you found this article and indicator helpful.