MA Whipsaws in Range Markets Strategies

Range Markets Trading Strategies

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 whipsaws 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 trading moving average indicator to give silver 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 silver in a range based market.

Ranging Market & Whipsaws - How to Trade Silver in a Range Market

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