Trading Short-Term and Long-Term Stock Indices Price Period of Moving Average
A Stock Indices trader can choose to adjust the Stock Indices price periods used to calculate the moving average.
How Do I Trade Stock Indices with Moving Average
If a trader uses short price periods then the MA will react faster to the changes in Stock Indices price.
For example if a trader uses the 7 day Stock Indices moving average then, the moving average indicator will react to the Stock Indices price change much faster than a 14 day or 21 day Stock Indices Moving Average would. However, using short time Stock Indices price periods to calculate the MA might result in the indicator giving false Stock Indices trading signals (whipsaws).
7 Day Moving Average - Moving Average Stock Indices 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 Stock Indices Trading Strategy Example
21 Day Moving Average - Moving Average Stock Indices Trading Strategies Example