Trading Short-Term and Long-Term Oil Price Period of Moving Average

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

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

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

7 Day Moving Average - Moving Average Oil Trading Strategies

If another trader uses longer time periods then the MA will react to crude oil 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 Oil Strategy Example

21 Day Moving Average - Moving Average Oil Strategies Examples