MA Whipsaws in Range CFD Market

Range Markets CFD Systems

The cfd moving average is a useful trade technical chart indicator to trade with when a trend has formed. However the moving average indicator is prone to generating whipsaws also known as fake out signals when the price is trading in range market.

The Moving Average indicator is prone to whipsaws during a ranging market because the price is volatile and keeps moving around the average, causing the cfd moving average indicator to give signals indicating upward trend and then quickly changing to give sell signals - thus generating many whipsaw signals.

It's for this reason that the Moving average cfd trading indicator should not be used to trade cfd in a range based market.

Ranging Market and Whipsaws in CFDs Moving Average Indicator - How to Trade CFD in a Range Market

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