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Combining SMA, RSI, and MACD for an Effective Trading Strategy on Pocket Option Platform”

The indicators are pre-installed to assist traders in locating the ideal entry points. But nothing is perfect, and they occasionally send messages a little bit late. Therefore, using a different indication to support the signals you are receiving is not a bad idea.

Three indications are combined in the method I’ll be discussing today. Relative Strength Index, Simple Moving Average, and Moving Average of Convergence and Divergence are three examples.

A strategy combining SMA, RSI and MACD

How does this work?

The most significant signal is RSI. When it crosses the 50 level, a trader will examine its line to determine the time. The SMA displays whether the price is for a specific amount of time above or below the moving average. Simply keep an eye out for price bars that are forming below or above the SMA. An additional filter in our method is the MACD indicator. If the baseline is crossed, very clear messages are sent.

how to install indicator

You must log into your Pocket Option account first. Click the feature icon for the indicators after selecting Assets and setting up the chart. Every indicator needs to be inserted separately. Leave the default values for all three indicators in order to fulfill the requirements of our plan.

Signals to open an UP trade on Pocket Option

Several conditions must be met before a buy trade can be initiated.

The 50-point line in the RSI window needs to be crossed from below.
1. The price bar ought to cross the SMA10 axis.
2. The MACD indicator’s two lines must intersect below the 0 line.
3- Once the aforementioned requirements have been satisfied, you can place a trade that will increase for the following candlestick.

Signals for opening a DOWN position on the Pocket Option platform

You must abide by following guidelines before beginning a short trade:

1. The RSI 50 line has been crossed from above.
2. Price bars form beneath the SMA10 line.
The MACD lines cross each other on the 3-0 lines.
You can then start a sell transaction that will succeed.

Final Thoughts

The indications from the three indicators are highly potent when combined. They do not, however, occur frequently. On the candlesticks, the RSI and MACD may cross at slightly different times. The RSI is probably going to stay in the 50 range for a while. This is not encouraging. Keep in mind that for the strategy to succeed, all three conditions must be met. Waiting for a powerful signal requires a lot of patience. But once you start, you can pretty much guarantee that trading will be profitable.

I want you to test the approach using the free Pocket Option sample account. You have time to learn the method at your own pace because there is no danger involved. Please feel free to post any queries or worries in the comments area.

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