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The SMA – Always So Simple
Why the simple moving average? Once you begin to peel back the onion, the SMA might be simple to calculate, but isn’t as simple to trade.Not surprisingly, the simple moving average is a popular technical indicator. Perhaps the most popular indicator in all of trading. But like most indicators, it isn’t a cure-all for trading.
If you’re familiar with the indicator, it isn’t so difficult to see why it can be challenging to trade with simple moving averages. After all, just a quick Google search will turn up dozens of day trading strategies.
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But how do we know which ones will work?
That is our goal in this post — to show you everything you need to know about simple moving averages. We’ll cover various trade examples, charts, and videos. In addition, we’ll cover the simple moving average formula, popular moving averages (5, 10, 200), real-life examples, crossover strategies, and personal experience with the indicator.
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