Trading Short-Term and Long-Term Stock Price Period of Moving Average
A stock trader can choose to adjust the stocks price periods used to calculate the moving average.
If a stock trader uses short stocks price periods then the MA will react faster to the changes in stocks price.
For example if a stock trader uses the 7 day stock trading moving average then, the moving average indicator will react to the stocks price change much faster than a 14 day or 21 day stock trading Moving Average would. However, using short time stocks price periods to calculate the MA might result in the indicator giving false stock trading signals (whipsaws).
7 Day Moving Average - Moving Average Stock Trading Strategies
If another trader uses longer time periods then the MA will react to stocks price changes much slower.
For example, if a stock 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 Stock Trading Strategy Example
21 Day Moving Average - Moving Average Stock Trading Strategies Example