Trade Forex Trading

MA Whipsaws in Range Bound Sideways Market - How Do I Trade Index in a Range Market?

The Indices MA is a helpful and useful trade chart indicator to trade with when a price trend has formed & shaped. However the moving average MA technical indicator is prone to fake-outs when the price is trading in range market.

The Moving Average is prone to whipsaws during a ranging market because the price is volatile and keeps moving around the average, causing the Indices moving average MA indicator to give signals indicating upwards market trend and then quickly changing to give sell signals.

It is for this reason that the MA indicator shouldn't be used to trade Indexes in a range based market.

How to Trade the Index in a Range Market - MA(Moving Average) Indicator Signal in Range Market

Ranging Market & Whipsaws - How Do I Trade Indices in a Range Market

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

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