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 illustration 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 intraday trading MA would. However, using short time price periods to calculate the Moving Average might result in the technical indicator giving false signals (whipsaw signals).

Trading with Shortterm & Long term MAs Strategies - No Nonsense Trading MA Technical Indicator

7 Day Moving Average - Moving Average Trade Methods

If another trader uses longer chart time periods then the Moving Average will react to the price change much slower.

For example illustration, if a trader uses the 14 day Moving Average then the average will be less prone to whip saws but it will react much slower.

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14 Day Moving Average - Moving Average Trade Strategy Example

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Trading Short Term and LongTerm Price Period of MA