XAUUSD Trading Moving Average Whipsaws in Range XAUUSD Market
Range Markets XAUUSD Systems
The xauusd moving average is a useful xauusd trading technical chart indicator to trade with when a xauusd trend has formed. However the moving average xauusd indicator is prone to generating whipsaws also known as fake out signals when the gold price is trading in range market.
The Moving Average technical indicator is prone to whipsaws during a ranging xauusd market because the gold price is volatile and keeps moving around the average, causing the xauusd moving average technical indicator to give xauusd signals indicating upward xauusd trend and then quickly changing to give sell xauusd signals - thus generating many whipsaw signals.
It is for this reason that the Moving average xauusd trading indicator should not be used to trade xauusd in a range based market.
Ranging Market and Whipsaws in Gold Trading Moving Average Indicator - How to Trade XAUUSD Trading in a Range Market
This is why it is best to combine this xauusd moving average technical indicator with other xauusd indicators when generating xauusd trading signals to trade xauusd with.