Free Resource
Simple SMA + MACD Trading Strategy for Beginners
If you’ve never traded before, the hardest part isn’t strategy.
It’s starting.
Most beginners open TradingView, add five indicators, watch YouTube for three hours, and somehow end up more confused than when they started. So they either quit or start gambling.
This strategy is for the opposite type of person.
You want:
- simple rules
- clear entries
- no prediction
- no overthinking
And you’re fine with a 40–50% win rate as long as it’s repeatable.
Good. That mindset survives.
What this strategy is (and what it’s not)
Let’s be clear before we go any further.
This strategy:
- is simple
- is mechanical
- is beginner-safe
- works on most markets
- teaches you structure + momentum
This strategy is NOT:
- a shortcut to profits
- an institutional secret
- a high win-rate system
- something to overtrade
It’s a training strategy. A way to learn execution, patience, and consistency without drowning in concepts.
Indicators used (only 3, on purpose)
You will use:
- SMA 7 (fast moving average)
- SMA 200 (slow moving average)
- MACD (12, 26, 9)
That’s it. No RSI. No volume. No magic.
Why these?
- SMA 200 = overall trend filter
- SMA 7 = short-term direction
- MACD = momentum confirmation
Simple structure. Simple confirmation. Simple execution.
Best timeframe and market to use
This works best on:
- 1H or 4H for beginners
- Forex, indices, large-cap stocks
- Crypto (only major coins)
Avoid:
- 1-minute charts
- low liquidity assets
- news spikes
You’re learning consistency, not speed.
The core logic (important)
We only take trades with the higher trend.
SMA 200 tells us the trend.
SMA 7 gives the direction change.
MACD confirms momentum.
If all three align, we take the trade.
If one is missing, we do nothing.
No debate. No interpretation.
The SMA + MACD Strategy Rules
Buy setup (long trade)
Step 1: Trend filter
Price must be above the 200 SMA.
If price is below it, you are not allowed to buy.
This rule alone saves beginners from most losses.
Step 2: Signal
Wait for the 7 SMA to cross ABOVE the 200 SMA.
This is your first signal.
Do NOT enter yet.
Cross = potential change in direction, not confirmation.
Step 3: Entry confirmation
Wait for the MACD histogram to turn positive (above zero line) or the MACD line to cross above the signal line.
This confirms momentum.
Now you enter the trade.
Step 4: Stop loss
Place stop:
- below the recent swing low, or
- below the 200 SMA (whichever is closer)
Risk should be fixed (example: 1% per trade).
Step 5: Take profit
Target:
- 1:2 risk-to-reward minimum
If you win less than you lose, math kills you. Respect math.
Sell setup (short trade)
Exact opposite:
- Price below 200 SMA
- 7 SMA crosses below 200 SMA
- MACD turns negative
- Stop above swing high
- 1:2 RR minimum
If you can’t follow mirrored rules, don’t short yet.
Example (simple scenario)
Let’s say:
- EUR/USD is below 200 SMA
- 7 SMA crosses down
- MACD histogram flips red
You enter short.
You lose? Fine.
You win? Fine.
Over 50 trades, this system usually lands 40–50% win rate.
That’s not impressive.
That’s sustainable.
Why this strategy works (when it works)
This strategy works because it forces you to trade:
- with trend
- with momentum
- after confirmation
- with fixed risk
Most beginners lose because they trade:
- against trend
- before confirmation
- with emotion
- with random size
This strategy fixes that behavior.
Why beginners should start with this strategy
Because it teaches the right habits:
- waiting
- filtering
- risk control
- execution discipline
You don’t need a fancy system.
You need repeatable behavior.
Once you can execute this strategy cleanly for 50–100 trades, you’re ready for more advanced methods (SMC, ICT, etc.). Not before.
Common mistakes (read this twice)
- Entering at the cross without MACD confirmation
- Ignoring the 200 SMA trend filter
- Changing settings after losses
- Overtrading small timeframes
- Moving stops because “it might come back”
Every beginner does these. Fix them early.
A simple checklist you can use
| Rule | Yes / No |
|---|---|
| Price above/below 200 SMA? | |
| 7 SMA crossed correctly? | |
| MACD confirmed momentum? | |
| Risk fixed? | |
| RR at least 1:2? | |
| No news spike? |
If any box is empty, you wait.
Waiting is part of the strategy.
Is this a profitable strategy?
Yes, if you:
- trade it consistently
- accept losses calmly
- keep risk fixed
- take only clean setups
No, if you:
- oversize
- revenge trade
- jump timeframes
- add random filters
This strategy doesn’t fail people.
People fail this strategy.
Final thoughts
You don’t need complexity to start trading.
You need structure.
This SMA + MACD strategy gives you:
- clear rules
- clean entries
- predictable behavior
Use it to learn discipline.
Use it to learn patience.
Use it to stop guessing.
Once you master execution, you can upgrade your tools.
Until then, simple beats smart every time.