Commodity Trading Moving Average Whipsaws in Range Commodity Trading Market

Best Commodity Trading Strategy for Moving Averages Indicator

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

The Moving Average is prone to whipsaws during a ranging commodity market because the commodities price is volatile and keeps moving around the average, causing the commodity moving average indicator to give commodity signals indicating upward commodity trend and then quickly changing to give sell trading signals.

It is for this reason that the Moving average indicator should not be used to trade commodity in a range based market.

Ranging Market and Whipsaws - How to Trade Commodity in a Range Market

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