Moving Average Whipsaws in Range Market
The forex moving average is a useful forex chart indicator to trade with when a forex trend has formed. However the moving average forex indicator is prone to whipsaws when the forex price is trading in range market.
The Moving Average is prone to whipsaws during a ranging forex market because the price is volatile and keeps moving around the average, causing the forex moving average indicator to give forex signals indicating upward forex trend and then quickly changing to give sell forex trading signals.
It is for this reason that the Moving average indicator should not be used to trade forex in a range based market.
Ranging Market & Whipsaws - How to Trade Forex in a Range Market
This is why it is best to combine this forex moving average indicator with other forex indicators when generating forex trading signals to trade forex currencies with.