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Trading Short-Term and Long-Term Forex Price Period of Moving Average

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

 

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

 

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

7 Day Moving Average - Moving Average Forex Trading Strategies

7 Day Moving Average - Moving Average Forex Trading Strategies

 

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

 

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

14 Day Moving Average - Moving Average Forex Trading Strategy Example

14 Day Moving Average - Moving Average Forex Trading Strategy Example

 

21 Day Moving Average - Moving Average Forex Trading Strategies Example

21 Day Moving Average - Moving Average Forex Trading Strategies Example

 

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