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

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

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

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

7 Day Moving Average - Moving Average Commodity Trading Strategies

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

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

14 Day Moving Average - Moving Average Commodity Trading Strategy Example

21 Day Moving Average - Moving Average Commodity Trading Strategies Examples