Short Term & Long Term Indices Price Period of Moving Average(MA)
One can choose to adjust the Indices price periods used in calculating the moving average.
How Do I Trade with MA
If a trader uses short price periods then the MA Moving Average will react faster to the changes in Stock Indices price.
For illustration 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 Index Moving Average(MA) would. However, using short time Indices price periods to calculate the MA Moving Average may result in the indicator giving and generating false whipsaw signals (whipsaw signals).
7 Day Moving Average(MA) - MA(Moving Average) Indices Strategies
If another trader uses longer time periods then the MA Moving Average will react to price changes much slower.
For illustration, if a trader uses the 14 day MA(Moving Average) then the average will be less prone to whipsaws but it will react much slower.
14 Day Moving Average(MA) - MA(Moving Average) Indices Trading Strategy Example
21 Day Moving Average(MA) - MA(Moving Average) Indices Strategies Example
Get More Topics:
- MetaTrader FTSE MIB 40 Indices FTSE MIB 40 MT4 FX Trade Software/Platform
- Setting a XAU/USD Schedule
- How Do You Analyze FX Trade on MT5 Software/Platform?
- No Nonsense Pivot Points Trading Indicator Course Tutorial
- XAUUSD Platform/Software MetaTrader 5 Gold
- 3 Types of XAU/USD Stochastic Oscillator, Fast Stochastic, Slow Stochastic and Full Stochastic Formula
- Setting Up Forex MACD EA
- Learn Index Forex Trade Guides
- S&PASX 200 MT4 S&P ASX Name in MT4 Software
- Where is JP 225 on MT5 Platform/Software?