Trade Stock Indices

MA Whipsaws in Range Bound Sideways Markets Strategies

Range Markets Strategies

The indices trading moving average is a useful chart indicator to trade with when a indices trend has formed. However the MA technical indicator is prone to fake-outs when price is trading in rangebound market.

The MA Moving Average is prone to whipsaw fake outs during a range bound market because the price is volatile and keeps moving around the average, causing the trading moving average indicator to give signals indicating upward indices trend & then quickly changing to give sell stock signals.

It's for this reason that the Moving Average indicator shouldn't be used to trade indices in a range based market.

MA Whipsaws in Range-Bound Sideways Markets Stock Strategy

Range-Bound Market and Whipsaws - How to Trade Stock Index in a Range Market

This is why it's best to combine this trading moving average indicator with other indicators when generating signals to trade indices with.

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