Swing traders use many indicators to help them assess potential trade opportunities. Moving averages – both Simple and Exponential – are among the most popular and effective when developing a trading strategy.
In essence, a Simple Moving Average (SMA) is an expression of the average closing price of a financial instrument over a particular number of periods.Any number of time periods can be used, but the 5, 10, 20, 50, 100, and 200, are among the most popular.
Finally, as with all swing trading strategies, sound risk management is crucial to long-term profitability.This means using correct position sizing and appropriate stop-losses. And in the context of the moving average crossover, there are various possible approaches.