Moving Average Whipsaws in Range Market - How Do You Trade Indices in a Range Market?

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

The Moving Average is prone to whipsaws during a ranging Stock Indices market because the price is volatile and keeps moving around the average, causing the Indices moving average indicator to give Indices signals indicating upwards Indices trend and then quickly changing to give sell trading 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 & Whipsaws - How Do You Trade Indices 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 trading signals to trade Indices with.