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