This is an Olymp Trade trading strategy that is very effective, simple and easy to use. Using SMA indicator to earn 5% profit per day when trading in Olymp Trade.
What is SMA indicator?
SMA is the abbreviation of Simple Moving Average – a type of moving average indicator. This is a simple but creditable among professional traders due to its accurateness in indicating the trend of market. Besides, SMA also shows you when the trend comes to an end and market develops a new trend.
How to set up SMA indicator in Olymp Trade?
SMA indicator is often used by traders at the same time with Japanese candlestick chart, you should change your chart type to Japanese candlesticks so that the indicator becomes most effective.
Firstly, choose Japanese candlestick chart for your trade
At Indicator Tab, choose SMA to open this indicator
Finally, adjust the specification for SMA. The default cycle for SMA is 10. Depending on your trading strategy, you can change the cycle time to 5 if you like short-time order. But if you are into long–time order, you can choose the cycle time as 20 or 30.
How to use SMA indicator in Olymp Trade?
Observe closely when the candle approach SMA line
If price cuts the SMA line from under the SMA line, creating a green candlestick that grows higher than the line, it may indicate an upward trend in the future and you can begin to trade with UP.
On the contrary, if price makes red candles that cuts the SMA line from above, there’s high probability price will reverse its trend from upward to downward. This time, you can trade with the DOWN.
What you need to look out when using SMA indicator in Olymp Trade
SMA may become fluctuated and incorrect (when price trend line and SMA line cut each other continuously). Therefore, you should use SMA combining with other indicators to increase your probability to success with your chosen Fixed Time Trade in Olymp Trade. For example: RSI, Parabolic SAR…
Depending on your strategy, you can choose the suitable SMA line. For example: SMA line 5 or 10 with short time and higher value of SMA with long time.
You can use SMA when you are observing news. If there is news in market, price can change dramatically in short time. This is when you can open an UP/DOWN order only with using SMA indicator