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Stocks Trading Moving Average Whipsaws in Range Stocks Market

Best Stocks Strategy for Moving Averages Stocks Indicator

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

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

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

Ranging Market & Whipsaws in Stocks

Ranging Market & Whipsaws - How to Trade Stocks in a Range Market

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