Moving Average Whipsaws in Range Trading Market

Best Strategy for Moving Averages Indicator

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