The Simple Moving Average (SMA) indicator for Metatrader 5 is a buy/sell moving average that puts equal weight on past and recent price data.
The SMA indicator is a popular moving average that’s often used in Forex to create a simple crossover moving average system.
The most commonly used periods for SMA: 200-day, 50-day, 20-day, 8-day and 5-day.
A simple moving average works equally well for scalping, day trading, and swing trading.
How to interpret this indicator?
- A price move above the simple moving average is considered bullish.
- A price move below the simple moving average is considered bearish.
- The SMA lags recent price data more than the EMA but creates fewer false trading signals.
The simple moving average indicator works for any trading instrument that can be loaded in the Metatrader 5 platform.
The following indicator inputs and parameters can be modified: SMA period (14), price.
First, familiarize yourself with this technical indicator and test it on a demo account.
It supports all time frames and Forex pairs.
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Chart Example
The following chart shows what the Simple Moving Average (SMA) Forex indicator looks like when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The Exponential Moving Average (EMA) Indicator?
Find a simple trading example below:
Buy Signal
- A bullish signal occurs when the blue colored SMA line is displayed on the price chart.
- Open a buy trade and set your stop loss 5 pips below the previous swing low.
- Close the buy trade for a fixed take profit target, or wait for a sell signal.
Sell Signal
- A bearish signal occurs when the orange colored SMA line is displayed on the price chart.
- Open a sell trade and set your stop loss 5 pips above the previous swing high.
- Close the sell trade for a fixed take profit target, or wait for a buy signal.
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Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the sma.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration