#TradingTools101

🛠️ Tool of the Day: Simple Moving Average (SMA)

SMA shows the general trend of the price by calculating the closing average over a period of time (e.g., 50 or 200 days).

When the price crosses above the SMA, it may indicate an upward trend; and vice versa.

📌 Risk Management Tip:

Use multiple time frames (e.g., SMA-50 and SMA-200) to avoid false signals, and don't forget to manage your trade size.

Do you rely on moving averages in your analysis?

#TradingTools101 #Trading_Strategy #SMA