Trading Short-Term and Long-Term Price Period of Moving Average

A trader can choose to adjust the stock indices trading price periods used to calculate the moving average.

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

For example if a trader uses the 7 day indices trading moving average then, the moving average indicator will react to the stock indices trading price change much faster than a 14 day or 21 day indices trading Moving Average would. However, using short time stock indices trading price periods to calculate the Moving Average might result in the indicator giving false indices trading signals (whipsaws).

7 Day Moving Average - Moving Average Trading Strategies

If another trader uses longer trading chart time periods then the Moving Average will react to stock indices trading price changes much slower.

For example, if a trader uses the 14 day Moving Average indicator then average will be less prone to whipsaws but it will react much slower.

14 Day Moving Average - Moving Average Indices Trading Strategy Example

21 Day Moving Average - Moving Average Indices Strategies Examples