INDICATOR NAME : SMA Crossover
INDICATOR TYPE : MA – Lagging indicator
MARKETS : Stocks
WORKS BEST IN : Trending / sideways market
THEORY :
This is a simple Moving average crossover strategy using Two Moving averages. I have used 12 day SMA and 26 day SMA for strategy constructions.
This is a long strategy
BUY when Fast MA (12 day SMA) Cross above Slow MA (26 day SMA)
SELL when Fast MA (12 day SMA) Cross Below Slow MA (26 day SMA)
SL with 1% TP with 2%
FORMULA :
ENTRY
BUY 1 share when 12 SMA crosses above 26 SMA. Enter trade between 09:00 to 23:59
EXIT
SELL 1 share when 12 SMA crosses below 26 SMA or at stop loss of 1% or target profit of 2%
OPTIMISATION :
- Moving average period can be optimized .
- Instead of SMA other moving average types can be used such as EMA, DEMA etc.
