Oil Trading Moving Average Whipsaws in Range Oil Trading Market

Range Markets Oil Trading Systems

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

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

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

Ranging Market & Whipsaws - How to Trade Oil Trading in a Range Market

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