Hi guy's, i'm using a simple system to trade with success.
I want the help of you guys because i'm newbie on forex and don't know how can i filter false signals.
The system is simple:
On the 5minute chart i put an 200 SMA and sell when price cross it down, and buy when price cross it up.
Now my question is, how can i filter false signals as they appera on the chart?
I mean, there is some price action, or some indicator that can help me to discovery if the cross will be a strong move or weak move?
Of course this image is just an example, but there are many more fake crosses that happen that are not in the image.
Kindest regards,
Thomas
I want the help of you guys because i'm newbie on forex and don't know how can i filter false signals.
The system is simple:
On the 5minute chart i put an 200 SMA and sell when price cross it down, and buy when price cross it up.
Now my question is, how can i filter false signals as they appera on the chart?
I mean, there is some price action, or some indicator that can help me to discovery if the cross will be a strong move or weak move?
Of course this image is just an example, but there are many more fake crosses that happen that are not in the image.
Kindest regards,
Thomas