Trading Short Term & Long Term Indices Price Period of MA

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

How Do I Trade with MA

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

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

7 Day MA Moving Average - MA Moving Average Indices 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 MA Moving Average - MA Moving Average Indices Strategy Example

21 Day MA Moving Average - MA Moving Average Indices Trade Strategies Example