Moving Average Whipsaws in Range Trading Market
Best Strategy for Moving Averages Indicator
The trading moving average is a useful chart trading indicator to trade with when a market trend has formed. However the moving average indicator is prone to fake outs when price is trading in ranging market.
The MA is prone to whipsaw fakeouts during a ranging market because the price is volatile and keeps moving around the average, causing the trading moving average indicator to give trading signals indicating upward trend & then quickly changing to give sell signals.
It's for this reason that the Moving average indicator should not be used to trade gold in a range based market.
Ranging Market and Whipsaws - How to Trade XAUUSD in a Range Market
This is why it is best to combine this trading moving average indicator with other indicators when generating gold signals to trade with.
Learn More Tutorials & Courses:
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- Explanation of How to Read XAU/USD Charts
