Trading Short Term and LongTerm Price Period of MA
A trader can select to adjust the price periods used to calculate the moving average MA.
If a trader uses short price periods then the Moving Average will react faster to the changes in price.
For example if a xauusd trader uses the 7 intra-day trading moving average then, the moving average indicator will react to the price change much faster than a 14 day or 21 day trading MA would. However, using short time price periods to calculate the Moving Average might result in the technical indicator giving false signals (whipsaws).
7 Day Moving Average - Moving Average Trading Methods
If another trader uses longer chart time periods then the Moving Average will react to price changes much slower.
For example, if a trader uses the 14 day Moving Average indicator then the average will be less prone to whip saws but it will react much slower.
14 Day Moving Average - Moving Average Trading Strategy Example
21 Day Moving Average - Moving Average Trading Strategies Examples
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