Trade Stock Indices

Learn Stock Indices Trading

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

A indices trader can choose to adjust the stock indexes price periods used to calculate the moving average.


If a indices trader uses short stock indexes price periods then the MA will react faster to the changes in stock indexes price.


For example if a indices trader uses the 7 day indices trading moving average then, the moving average indicator will react to the stock indexes price change much faster than a 14 day or 21 day indices trading Moving Average would. However, using short time stock indexes price periods to calculate the MA might result in the indicator giving false indices trading signals (whipsaws).

7 Day Moving Average

7 Day Moving Average - Moving Average Indices Trading Strategies



If another trader uses longer time periods then the MA will react to stock indexes price changes much slower.


For example, if a indices 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

14 Day Moving Average - Moving Average Indices Trading Strategy Example


21 Day Moving Average

21 Day Moving Average - Moving Average Indices Trading Strategies Example

 

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