Trading Short-Term and Long-Term Indices Price Period of MA Moving Average

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

How to Trade with MA Moving Average

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 might result in the indicator giving false signals (whipsaws).

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

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