Trading Short Term & Long Term Price Period of Moving Average

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

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

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

7 Day Moving Average - Moving Average Trading Strategies

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

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

14 Day Moving Average - Moving Average Bitcoin Trading Strategy Example

21 Day Moving Average - Moving Average Bitcoin Strategies Example