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