Finding the ideal entrance spots is made easier with the aid of the indicators. They frequently deliver a signal with a tiny delay because nothing is flawless. Hence, it is not a terrible idea to use another indication to validate the signals you have already got.
The method I’d like to discuss today links three indicators. Relative Strength Index, Simple Moving Average, and Moving Average of Convergence and Divergence are three examples.
A strategy combining the SMA, the RSI, and the MACD
How does it work?
The RSI is the primary indicator. A trader who is tracking it will see when it crosses the 50-level mark. The SMA indicates how much the price deviates from or exceeds the average rate over a predetermined number of periods. Simply look to see if the price bars form below or above the SMA line. The MACD indicator serves as the second filter in our method. When it crosses the baseline, it sends off pretty strong signals.
How to set up the indicators
Your Quotex account must be logged in for this to work. Click on the indicator feature icon after selecting the asset and setting the chart. Each indication must be added independently. Leave all three indicators’ default settings in order to meet the needs of our plan.
Signals for opening UP trades at Quotex
To open a buy trade, a number of requirements must be satisfied.
The RSI window’s line of value 50 must be crossed from below.
Price bars must form above the SMA10 axis.
Under the 0 line, the two lines of the MACD indicator must cross.
You can place a UP trade for the period of the following candlestick whenever all the aforementioned requirements have been met.
Signals for opening DOWN positions on the Quotex platform
The guidelines for initiating a short trade are as follows:
From above, the RSI 50 line is crossed.
Price bars form beneath the SMA10 line.
Across the 0 lines, the MACD lines cross one another.
Then and only can you open a sell position successfully.
Final thoughts
The combined signals from the three indicators are quite potent. Unfortunately, they don’t happen frequently. It’s possible for the RSI and MACD crossovers to occur on slightly different candles. The RSI may swing near 50 for a considerable amount of time. Such indications are invalid. Note that all three requirements must be satisfied for a plan to be effective. It takes a lot of patience to wait for a strong signal. Yet, once the trade is eventually approved, you may be very certain that it will be a profitable one.
I urge you to use the free Quotex demo account to test the method. You have time to master the approach thoroughly because trading there carries no risk. Please feel free to leave any questions or concerns in the comments area below.
FAQS:
- What is the SMA indicator?
The SMA (Simple Moving Average) indicator is a trend-following indicator that calculates the average price of an asset over a specified period of time. It is used to identify trends and potential entry and exit points in the market. - What is the RSI indicator?
The RSI (Relative Strength Index) indicator is a momentum oscillator that measures the strength of an asset’s price action by comparing upward and downward price movements. It is used to identify overbought and oversold conditions in the market. - What is the MACD indicator?
The MACD (Moving Average Convergence Divergence) indicator is a trend-following momentum indicator that measures the difference between two moving averages of an asset’s price. It is used to identify potential trend reversals and entry and exit points in the market. - How can I connect the SMA, RSI, and MACD indicators for a successful trading strategy on Quotex?
One way to connect these indicators is to use the SMA as a trend indicator, the RSI as a momentum indicator, and the MACD as a confirmation indicator. For example, when the SMA indicates a bullish trend, the RSI is in oversold territory, and the MACD line crosses above the signal line, it may be a signal to enter a long position. - What are some risks associated with using the SMA, RSI, and MACD indicators together on Quotex?
One risk associated with using these indicators together is that false signals can occur, resulting in losses. It is important to use risk management techniques such as stop-loss orders to minimize potential losses. - Can I use other indicators in conjunction with the SMA, RSI, and MACD on Quotex?
Yes, you can use other indicators in conjunction with the SMA, RSI, and MACD on Quotex. It is important to choose indicators that complement each other and provide different types of information about the market. - How can I improve my ability to use the SMA, RSI, and MACD indicators together on Quotex?
To improve your ability to use these indicators together on Quotex, it is important to practice and gain experience, and to stay informed about market news and events that may impact trading. You can also use demo trading accounts to practice your strategies without risking real money.
