Trading Short Term & Long Term Price Period of MA Moving Average

A trader can select to adjust the price periods used in calculating the moving average MA.

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

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

7 Day Moving Average Indicator - Moving Average Strategy

If another trader uses longer chart time periods then the MA will react to price change 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 - MA Strategy Example

21 Day Moving Average - Moving Average Strategies Example

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