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
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
21 Day Moving Average - Moving Average Forex Trading Strategies Example