Trading Short Term & Long Term Stock Price Period of Moving Average

A trader can choose to adjust the stocks price periods used to calculate the moving average.

If a trader uses short stocks price periods then the Moving Average will react faster to the changes in stock trading price.

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

7 Day Moving Average - Moving Average Stock Trading Strategies

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

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

14 Day Moving Average - Moving Average Stock Strategy Examples

21 Day Moving Average - Moving Average Stock Strategies Examples