Oil Trading Moving Average Whipsaws in Range Oil Trading Market

Range Markets Oil Trading Systems

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

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

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

Ranging Market and Whipsaws in Crude Oil Moving Average Indicator - How to Trade Oil Trading in a Range Market

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