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False Signals

Discussion in 'Technical Analysis' started by pareshvarde, Dec 10, 2012.

  1. pareshvarde

    pareshvarde New Member

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    Shabbir, I started learning technical analysis inspired through you.

    However I do not understand how do I detect false signals generated through either MACD or Moving averages. ex. I go long based on MACD signal cross however just next or in couple of day it start going down.

    Can you please explain how should we avoid this? so 90% of our long position would be correct?
     
    pareshvarde, Dec 10, 2012
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  2. shabbir

    shabbir Administrator Staff Member

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    When it is false, you would be saved by stop loss.
     
    shabbir, Dec 10, 2012
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  3. pareshvarde

    pareshvarde New Member

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    Isn't there any better way?
     
    pareshvarde, Dec 10, 2012
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  4. kartickdey

    kartickdey New Member

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    Yes... Better way ke liye aapko MACD ke sath sath RSI bhi check karna padega...
     
    kartickdey, Dec 11, 2012
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  5. shabbir

    shabbir Administrator Staff Member

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    Better way that I prefer is support and resistance and when support is cracked then I am out no matter what. In false break out / break down as well
     
    shabbir, Dec 11, 2012
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