Trading Short-Term and Long-Term Price Period of Moving Average
A trader can choose to adjust the periods used to calculate the moving average.
If a trader uses short periods then the MA will react faster to the changes in price.
For example if a trader uses the 7 day MA then, it will react to price change much faster than a 14 day or 21 day MA would. However, using short time periods to calculate the MA might result in the indicator giving false signals (whipsaws).
7 day Moving Average
If another trader uses longer time periods then the MA will react to price changes much slower.
For example, if a trader uses the 14 day MA then the average will be less prone to whipsaws but it will react much slower.
14 day MA
21 day MA