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

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

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

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

7 Day Forex Moving Average Technical Indicator - Moving Average Trading Strategy

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

For example, if a 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 Strategy Example

21 Day Moving Average - Moving Average Strategies Examples