The next tactic that we can use to distinguish a trending market from a non-trending market is the use of moving averages. However, you need to combine the moving averages with the price action tactic from point one, because moving averages alone will sometimes fool you if a market is range bound. So, if you follow the moving averages in a range-bound market, you will continuously get whipsawed as price will generally change direction right as the moving averages cross.