Trading Short Term and Long Term Price Period of Moving Average

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

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

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

7 Day Moving Average - Moving Average Trading Strategies

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

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

14 Day Moving Average - Moving Average Gold Trading Strategy Example

21 Day Moving Average - Moving Average Trading Strategies Examples