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The SMA is simple once you get the hang of it. It calculates the average price over a set period and shows trend direction. One common approach is the crossover strategy: when a short-term SMA crosses above a long-term SMA, that’s a buy signal; when it crosses below, that’s a sell. There’s a full guide here: SMA. Start with small periods, like 10 and 50 days, and test it on historical charts. Over time, you’ll notice patterns and better understand trend strength. Pairing it with another indicator, like MACD, helps confirm your trades.
The SMA is simple once you get the hang of it. It calculates the average price over a set period and shows trend direction. One common approach is the crossover strategy: when a short-term SMA crosses above a long-term SMA, that’s a buy signal; when it crosses below, that’s a sell. There’s a full guide here: SMA. Start with small periods, like 10 and 50 days, and test it on historical charts. Over time, you’ll notice patterns and better understand trend strength. Pairing it with another indicator, like MACD, helps confirm your trades.
Thanks, I tried this on a demo account, and it actually made sense. I’m slowly getting used to noticing crossovers and support levels. It feels less scary than I thought.