Energies Trading MA Whipsaws in Range Trade Market

Best Trading Strategy for Moving Averages Technical Indicator

The energies 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 energies moving average indicator to give signals indicating upward trend and then quickly changing to give sell trade signals.

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

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

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