Trading Short Term and Long Term Commodities Price Period of Moving Average

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

If a commodity trader uses short commodities price periods then the MA will react faster to the changes in commodity price.

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

7 Day Moving Average - Moving Average Commodity Trading Strategies

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

For example, if a commodity 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 Commodity Trading Strategy Example

21 Day Moving Average - Moving Average Commodity Trading Strategies Example