Place easy trades with Simple Moving Average (SMA) on Deriv

SMA or you can call it Simple Moving Average is a very basic indicator however, is a powerful one. This indicator is used by traders to identify the upcoming future trends and reversals of a security price.

Simple Moving Average Basics

Simple Moving Average is one of the types of Moving Average. The Moving Average has nine family members some of the most popular ones are EMA (Exponential Moving Average) , WMA (Weighted Moving Average) , and one of them is SMA (Simple Moving Average).

The Simple Moving Average is basically the addition of the security closing price and the division by the number of periods. The formula for the Simple Moving average is as follows:

SMA = C1 + C2 + …….CN / N

Here, C = Closing price of a security

N = Number of prices

How to add Simple Moving Average on Deriv chart

 

How to add Simple Moving Average on the Deriv chart

In order to add Simple Moving Average on the Deriv chart follow the steps given below

Step 1: Log in to your Deriv account. In case you don’t have one click here

Step 2: Once you have logged in click on the chart button and set your default chart to candlestick

Step 3: Click on the indicator button and search for Moving Average in the list

Step 4: Click on the Moving Average name and set the type to SMA

Step 5: Make necessary amendments like periods and colour and once you are done click apply.

How to trade with Simple Moving Average on the Deriv trading platform

 

When the price and the moving average line intersect each other it creates buying and selling opportunities for the traders.

 

 

How to trade with Simple Moving Average on the Deriv trading platform

 

When the price intersects above the moving average line it signals an upcoming bullish trend and here you can place a buy trade.

As, you can see above is the 10-minute chart of AUD/JPY and we can clearly see the price intersects above the moving average which signals a bullish trend and we can place a buy trade here.

 

How to trade with Simple Moving Average on the Deriv trading platform

 

Similarly, When the price intersects below the moving average line it signals an upcoming bearish trend and here you can place a sell trade.

As, you can see above is the 10-minute chart of AUD/JPY and we can clearly see the price intersects below the moving average which signals a bearish trend and we can place a sell trade here.

 

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *