Moving Average Whipsaws in Range Markets Indices Trading Strategies

Range Markets Indices Trading Systems

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

The Moving Average is prone to whipsaws during a ranging stock indices market because the stock indices trading price is volatile and keeps moving around the average, causing the indices trading moving average indicator to give indices trading signals indicating upward indices trend and then quickly changing to give sell stock indices trade 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 to Trade Indices in a Range Market

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