Trading Short-Term and Long-Term Oil Price Period of Moving Average
A oil trader can choose to adjust the crude crude oil price periods used to calculate the moving average.
If a oil trader uses short crude crude oil price periods then the MA will react faster to the changes in crude oil price.
For example if a oil trader uses the 7 day oil moving average then, the moving average indicator will react to the crude crude oil price change much faster than a 14 day or 21 day oil Moving Average would. However, using short time crude 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 crude oil price changes much slower.
For example, if a oil 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