Hello dio889,dio889 wrote: Thu Aug 03, 2023 4:07 am hello Redeyes
I have a big problem when the price range
i take lot of fake signal , all condition are good but change every 5 or 6 candles
How can I avoid these bad signals?
We should always choose when is best to trade and when to stay out of the market. When market is consolidating (price move in small ranges), try not to enter a trade if possible.
Here is an example of JPN225 on 1st August 2023 (2 days ago), in M5 timeframe. In the chart (screenshot 1), we have 2 possible long/buy entries that met all our entry conditions. Should we or should we not take those trades? To make those decision, we need to look at:
1. Price actions
2. Higher timeframe trends
3. Area of value / importance
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Price Action (refer screenshot 1 above)
Price candles were very small : signifying not enough volume.
Candle patterns - doji, shooting stars and hammers were everywhere : telling us that market was indecisive, small numbers of buyers and seller were fighting.
Waddah Attar - the histo bars were under (or very near to) the explosion line : no volume and indecisive.
Those are a few example of price actions that we must be aware of.
Higher Timeframe Trend (refer Screenshot 2 below)
This is the same chart, with the same lines. The only difference is, the 2xMA line in is showing a higher timeframe. In this case, the chart is in M5 and the 2xMA is showing M15. In the template, there are 2xMA and 2xMA+ buttons. I set the 2xMA+ to show AHTF. We can also set it to show fixed higher timeframe like H1 or H4.
In a higher timeframe, 2xMA still showing short/sell.
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In Screenshot 3 below, the same chart JPN225 but in H1 timeframe. In this H1 chart, look at the first blue line on the left. Although in M5 the first blue line is showing Long/Buy, but in H1 the trend is about to change to short. The MACD has been red for about 2 or 3 hours and going downwards. TDI main line (green one) is also going down to cross the 0 level. Stoch in 6Signal is red for 4 hours and CCI also red for 2 hours.
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Area of Value
Refer to Screenshot 4 below, I put up EMA50 on the chart (the Gold color line). We can see that the market price is respecting EMA50 where the price keep bouncing on it. EMA50 is our area of value now. So, at those two possible long/buy area, we must wait for price movement to confirm whether it bounce downwards or pierce through upwards and breaks the EMA50.
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In summary, we must always study the price action, look at the overall trend, be aware of area of value. Indicators are to help us to see what is happening. Combining the signals from various indicators are crucial. Dont rely just on a single signal. Put on EMA lines on the chart (EMA20 or EMA50 or EMA100 and find what EMA period the price is respecting), turn on S&R zones, look at Pivot lines, etc.
Hope that helps.
-RedEye-
