Trade Forex Trading

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

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

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

For example if a trader uses the 7 day moving average 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 Moving Average might result in the indicator giving false signals (whipsaws).

Short-term and Long-term Moving Averages Strategies - Moving Average Indicator Technical Analysis

7 Day Moving Average - Moving Average Strategies Methods

If another trader uses longer chart time periods then Moving Average will react to 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.

MA Indicator Analysis in Trading Described

14 Day Moving Average - Moving Average Strategy Example

Gold with Short-term and Long-term Gold Moving Averages

21 Day Moving Average - Moving Average Strategies Example