Trade Gold Trading

Trading Short Term and Long-Term Price Period of MA

A trader can select to adjust the price bars periods used to calculate the moving average MA.

If a trader employs shorter price periods, the Moving Average will respond more swiftly to price variations.

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 bars periods to calculate the MA may result in the technical technical indicator giving false signals (whipsaw signals).

Trading Approaches Using Short-term and Long-term Moving Averages - A Direct Approach to Trading with the MA Technical Indicator

7 Day Moving Average(MA) - MA Trade Methods

If a trader opts for longer intervals when viewing chart timeframes, the Moving Average's response to price shifts will be considerably 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.

How Do I Use MA Technical Indicator on Chart?

14 Day Moving Average(MA) - Moving Average Trade Strategy Example

MA Indicator

21 Day Moving Average(MA) - MA Trade Strategies Examples

Learn More Lessons & Courses:

Gold Broker