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

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

How to Trade Indices 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 Indices trading 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