Trading Short Term and Long Term Stocks Price Period of Moving Average

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

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

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

7 Day Moving Average - Moving Average Stocks Strategies

If another trader uses longer time periods then the Moving Average will react to stocks price changes much slower.

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

14 Day Moving Average - Moving Average Stocks Strategy Example

21 Day Moving Average - Moving Average Stocks Strategies Example