Trading ShortTerm and LongTerm Price Period of Moving Average(MA)

A trader can select to adjust 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 MA indicator will react to 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 indicator giving false signals (whipsaw signals).

7 Day Moving Average(MA) - 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 whip saws but it'll react much slower.

14 Day Moving Average(MA) - MA Strategy Example

21 Day Moving Average(MA) - MA Strategies Example

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