Short Term and LongTerm Price Period of Moving Average
One can select to adjust the Indices price periods used in calculating the moving average.
How Do You Trade with Moving Average?
If a trader uses short price periods then the MA Moving Average will react faster to changes in the price.
For illustration if a trader uses the 7 day Stock Index moving average then, moving average indicator will react to the Indices price change much faster than a 14 day or 21 day Index MA Moving Average would. However, using short time Indices price periods to calculate the MA Moving Average may result in the indicator giving 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 change moves much slower.
For illustration, if a trader uses the 14 day MA then the average will be less prone to whipsaws but it'll react much slower.
14 Day Moving Average(MA) - MA Moving Average Indices Strategy Example
21 Day Moving Average(MA) - MA Moving Average Indices Trade Strategies Example
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