How I Use 10SMA and MACD to Identify Buy and Sell Signals

By
Jaycee De Guzman
-
4
4721

I’ve been asked why I am using 10SMA-30SMA-70SMA while others are using a different setup. I have already developed a certain level of comfort in using this setup. I have also spotted certain buy and sell signals by using this setup in combination with some of the indicators that I am using.

I have many ways on how to spot a buy and sell signal. Today, I’d like to share with you how I use 10SMA and MACD to spot buy and sell signals. I’ll talk about the other moving averages some other time. I suggest you subscribe to my email list so you’ll receive daily updates, too.

I’m not going to teach you where to pull up 10SMA or what to click because it varies depending on whose platform you’re using. For my MACD, here’s my setup: 12=fast moving average, 26=slow moving average, 9=signal line.

Remember these combinations. When MACD is about to cross (anticipation) or when it crosses above the signal line, and the price is moving above the 10SMA, I might consider it as a buy signal. When MACD crosses below the signal line, and the price is moving below the 10SMA, I might consider that as a sell signal.

Remember this one also: I give more importance to the position of the price relative to the position of 10SMA.

I’ll give two examples.

TEL’s Chart

TEL1

CYBR’s Chart

CYBR1

Some Notes

There are other things that I check (sorry, it’s a secret sauce) before I add a stock to my watchlist. Not because the conditions I’ve mentioned above are met, it does not always mean the stock should be traded right away.

I suggest you find your own way of confirming the buy or sell signal that you will get from this pattern that I’ve shared with you before you jump off a trade. But, at least, with this thing that I’ve shared with you, I hope you can add this to your arsenal so you, like us in the Stock Signals Philippines, can also have more wins than losses.

Jaycee De Guzman

Jaycee De Guzman

I am the founder and CEO of iPresence Digital Marketing, Inc. and Equilyst Analytics, Inc. At iPresence, we have been helping SMEs reach and dominate the global market through our digital marketing services since 2001. At Equilyst, we have been helping Filipinos experience a simplified and profitable stock trading and investing experience in the Philippine Stock Market since 2014.
Jaycee De Guzman

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4 COMMENTS

    • Hi, Luc!

      Thank you for commenting on my post. There are two types of moving averages (MAs): Simple Moving Average (SMA) and Exponential Moving Average (EMA). The type of MA that I mentioned in this article is an SMA. MAs can be used in forex, too.

      I hope that helps.

  2. Would like to have some of your technical analysis with century pacific food inc.can you give few insights.

    Thanks.
    Arn

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