MA Whipsaws in Range Trading Market

Best Trading Strategy for Moving Averages Indicator

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

The Moving Average is prone to whipsaws during a ranging gold market because the xauusd price is volatile and keeps moving around the average, causing the gold trading moving average indicator to give trading signals indicating upward trend and 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 gold trading moving average indicator with other indicators when generating gold trading signals to trade gold with.