SMA (Simple Moving Average) is an arithmetic calculation obtained by adding the recent closing prices then dividing them by the number of periods. You can easily use this indicator on the Binomo trading platform in the trend section.
How to configure SMA on the Binomo trading platform
Firstly, log in to your Binomo account and set your chart to the candlestick. Secondly, click on the indicator button and search for moving average and select the same from the menu.
You can change the colour of the SMA for better visibility and change the period to 21.
Using SMA in Trading on the Binomo trading platform
Trading with the SMA indicator is quite simple and easy. What you need to do is find the perfect spots and trade accordingly.
When the price intersects the SMA from the bottom and later moves up in an upward direction. It signals a bullish trend and here we need to open a buy trade.
Similarly, When the price intersects the SMA from the top and later stay below the same. It signals a bearish trend and here we need to open a sell trade.
Simple moving average is one of the most important chapters in the field of trading. However, as per my experience you cannot simply rely on single SMA for trading signals. You can best combine them with the indicators like Support and Resistance. Once, you have identified the buy or sell signal via SMA you need to verify your call with Support and resistance. In Support and resistance, If the price is near support level it signals a bullish trend and vice versa If the price is near resistance level it signals a bearish trned.