In my last article, I have covered the Single Simple Moving Average strategy but if you want better results with SMA you should try trading with a combination of two indicator lines. To explain you this strategy, I am going to use SMA with the periods of 7 and 25.
How to configure Simple Moving Average with 10 and 25 on IQ Option
Once you logged in to your IQ Option account, select your desired asset and set a 1 min Japanese candlestick chart. Next, hit the indicator icon and select Simple Moving Average from the menu. Now, change the period of the line to 7. and make sure to change the colour of the darken the indicator line for better visibility.
In the next Simple Moving Average, you need to follow the same above steps and change the period of the indicator line to 25 make sure to select a different colour for better visibility and result.
How to open a 5-minute position with the pair of Simple Moving Averages of 7 and 25
When the above two lines intersect each other, It generates buy and sell signals when SMA 7 intersect line 25 from the bottom and it begins to move up wait for the price or candle to become bullish and that’s the best time to place a buy trade.
Similarly, When the SMA line 7 intersects line 25 from the top and it stay below the line for a good amount of time, It is the best time to open a 5-minute sell trade.
So, this is how you trade with the combination of two Simple Moving Average and I hope you have understood the concept of the Simple Moving Average strategy properly. I will suggest you try this trading strategy on the IQ option demo account and move to real account once you are confident enough.