Trade Stock Indices

Short-Term and Long-Term Price Period of Moving Averages(MA)

A trader has the option to modify the price bar periods utilized for calculating the MA.

If a trader uses short price periods then the Moving Average will react faster to the changes in the price.

For instance, if an indices trader uses the 7-day trading moving average, the moving average indicator will react to price changes much faster than a 14-day or 21-day trading MA would. But, using short trading price periods to calculate the Moving Average might cause the technical indicator to give incorrect signals (whipsaw signals).

7-Day Moving Average Trades - Short and Long MA for Index Trading

7 Day Moving Average(MA) - MA Indices Strategies Methods

If another person trading uses chart periods that cover more time, then the Moving Average will change more slowly to price changes.

For instance, a 14-day moving average avoids false signals but lags behind quick changes.

14-Day Moving Average Trades - Short and Long Stock Index MA Strategies

14 Day Moving Average(MA) - MA Moving Average Strategy Example

21-Day Moving Average – Trading Indexes with Short and Long-Term Moving Averages

21 Day Moving Average(MA) - MA Indices Strategies Example

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