by User » Fri Jul 03, 2009 2:53 pm
Forum transfer: Submitted by Forex trader on September 22, 2007 - 12:51.
Tommy,
that's what filtering the signals is all about. In case you are using MACD or EMA cross or Stochastic - you must be familiar with their TRICKS, when one hour you can see lines crossing and then another hour they uncross...
This is a trap many newbie traders fall in. What is a solution?
Don't rush into the trade once you've got a signal.
1. Wait for a current candle to close.
2. Add indicator that does not use lines cross or signals that may change itself over the time, for example, Parabolic SAR (it can still change its dot, but it is rather an exception than a rule).
3. Add the same indicator with wider period.
4. Look back at larger time frames.