Simple Moving Average Channel (SMAC) — an indicator based on Simple Moving Average (SMA) and Average True Range (ATR). Thus, the SMAC forms a channel consisting of two SMA lines. The upper line is displayed in blue, and the lower line is displayed in red.
Trading on the indicator occurs at the channel breakdown:
- Buy entry when the price reaches the blue line of the indicator;
- Enter the sale when the price reaches the red line of the indicator.
The SMAC indicator can be used on absolutely all forex timeframes, but you need to take into account that the smaller the timeframe, the smaller the take profit. But on the other hand, there are more transactions. Input signals can be used both in the trend and in the flat. It is worth considering that with a trend, it is better to enter only in its direction.
The indicator has only one input parameter set — MultiplierATR.
MultiplierATR is a multiplier of the value of the ATR indicator.