Simple Moving Average Channel (SMAC) is an indicator based on the Simple Moving Average (SMA) and the Average True Range (ATR). Thus SMAC forms a channel consisting of two lines of SMA. The top line is displayed in blue and the lower one is red.
Trading on the indicator takes place at the break of the channel:
- Enter a Buy trade when the price reaches the blue line of the indicator
- Enter a Sell trade when the price reaches the red line of the indicator
SMAC can be used absolutely on all forex timeframes. However, please note, that the smaller timeframe, the less take profit used. But on the other hand the number of trades is larger in this case. A signal to enter can be uses both in trend and in flat. In case of a trend, it is better to enter only in the trend direction.
Description of Inputs
The indicator has only one parameter — MultiplierATR.
MultiplierATR is a multiplier value of the ATR indicator.