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

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

If a trader uses short crude oil price periods then the Moving Average will react faster to the changes in crude oil price.

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

7 Day Moving Average - Moving Average Oil Trading Strategies

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

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

14 Day Moving Average - Moving Average Oil Trading Strategy Example

21 Day Moving Average - Moving Average Oil Strategies Examples