Trading Short Term and Long Term Price Period of Moving Average

A trader can choose to adjust the forex price periods used to calculate the moving average.

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

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

7 Day Forex Moving Average Technical Indicator - Moving Average Strategy

If another trader uses longer trading chart time periods then the Moving Average 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 Moving Average - Moving Average Trading Strategy Example

21 Day Moving Average - Moving Average Trading Strategies Examples