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.
Study More Tutorials:
- What's Stock Index Online Trade?
- Generating Buy Signal and Sell Signal Using Strategy Rules
- Learn How to Trade IBEX 35 Indices
- How to Trade SPX Index Trade Strategies Tutorial
- CCI Divergence Index Technical Indicator
- Learn Index Trading Basics
- Indices Trade Download MetaTrader - Cannot Install MetaTrader 4 Platform
- Index MT4 Navigator Window
- Indices Trading Indicator MA Whipsaws in Range Market
- What's SPAIN 35 Index Trade Chart?
