Short Term and LongTerm Price Period of Moving Averages(MA)
A trader has the option to modify the price periods used for calculating the Indices' moving average settings.
How Do You Trade with Moving Average?
If a trader opts for shorter price periods, the MA (Moving Average) will respond more swiftly to price changes.
If a trader uses the Stock Index's 7-day moving average, the moving average indicator will respond to changes in the Indices price faster than a 14-day or 21-day Index MA Moving Average. However, if short time periods are used to calculate the MA Moving Average, the indicator might give incorrect whipsaw signals.
7 Day Moving Average(MA) - MA Moving Average Indices Strategies
Longer time frames make the moving average lag on price shifts. It responds slower to changes.
If a trader opts to use the 14-day moving average, the calculated average will be less sensitive to sudden market fluctuations but will respond more gradually to price changes.
The 14-Period Moving Average (MA) - An Illustrative Strategy Example for Indices Trading Using the MA
21-Day Moving Average Example: Strategies for Trading Indices with MA
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