High Profits Advanced Forex Smoothed Moving Average (SMMA ) Trading System – A Smoothed Moving Average is sort of a blend between a Simple Moving Average and an Exponential Moving Average, only with a longer period applied (approximately, half the EMA period: e.g. a 20-period SMMA is almost equal to a 40-period EMA).
The SMMA gives recent prices an equal weighting to historic prices. The calculation takes all available data series into account rather than referring to a fixed period. This is achieved by subtracting the prior periods SMMA from the current periods price. Adding this result to yesterday’s Smoothed Moving Average gives today’s Moving Average.
Forex Smoothed Moving Average (SMMA ) Trading Rules
- Long Entry: When Ema 11 Cross up WMA 21 and Indicators are blue.
- Short Entry: When Ema 11 Cross down WMA 21 and Indicators are red.
- Exit Position: When 2 indicators reversal position.
- Stop Loss: Place Stop loss at the Higher or lower of the entry bar.