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