Moving Average Whipsaws in Range Market - How Do I Trade Indices in a Range Market?

The Indices moving average is a useful trade chart indicator to trade with when a trend has formed. However the moving average indicator is prone to fake outs when the price is trading in range market.

The MA is prone to whipsaws during a ranging market because the price is volatile & keeps moving around the average, causing the Indices moving average indicator to give signals indicating upward trend & then quickly changing to give sell signals.

It is for this reason that the Moving average indicator should not be used to trade Indices in a range based market.

Ranging Market and Whipsaws - How Do I Trade Indices in a Range Market

This is why it is best to combine this Stock Index moving average indicator with other indicators when generating signals to trade Indices with.