MACD Fake Signal how to improve it

[abhishek_300]

I have been monitoring the MACD Signal on a 30 min chart. The MACD setting is 9,13,9. However all the buy signal entry are then hit by the stop loss. How can I improve this setting,or do i have to change my time frame or do i have to add some other more indicators to support it. Below is the link for the video which shows how the stop loss are hit after the MACD buy signal is triggered.
https://www.youtube.com/watch?v=GLoU8OjTjgc
Please provide me your inputs to improve this signal. Thanks

 

[mightyal]

I have been monitoring the MACD Signal on a 30 min chart. The MACD setting is 9,13,9. However all the buy signal entry are then hit by the stop loss. How can I improve this setting,or do i have to change my time frame or do i have to add some other more indicators to support it. Below is the link for the video which shows how the stop loss are hit after the MACD buy signal is triggered.
https://www.youtube.com/watch?v=GLoU8OjTjgc
Please provide me your inputs to improve this signal. Thanks

something i found was trading signals in the direction of the trend helps significantly

 

[abhishek_300]

thanks for your input

 

[timsk]

thanks for your input

Looking at your vid' it appears to me that you're trying to buy in a down trend. That's a sure fire recipe for loads of duff signals. I agree 100% with mightyal: only take long signals in an uptrend and short signals in a downtrend and either (long or short) if the market's range bound.
Tim.

 

[abhishek_300]

Looking at your vid' it appears to me that you're trying to buy in a down trend. That's a sure fire recipe for loads of duff signals. I agree 100% with mightyal: only take long signals in an uptrend and short signals in a downtrend and either (long or short) if the market's range bound.
Tim.

Thanks Timsk

 

[wackypete2]

use standard MACD parameters (12,26,9) and add a 50 simple moving average (50MA). If price is above the MA only take buy signals, if below then only take sell signals. This will filter out some of the bad signals. just remember no method will be perfect and you may miss a few signals but in general you will be on the right side of the trade.

Good Luck!

Peter

 

[abhishek_300]

Thanks Wackypete2 for your reply. I will test those settings.

 

[NVP]

MACD's are lagging based indicators (as I am regularly told by others)......I would recommend some simple PA patterns to accompany your approach........ or at least a secondary MA based signal that gives you perspective on the higher tf / trend

then trade with higher /trend direction

N

 

[abhishek_300]

MACD's are lagging based indicators (as I am regularly told by others)......I would recommend some simple PA patterns to accompany your approach........ or at least a secondary MA based signal that gives you perspective on the higher tf / trend

then trade with higher /trend direction

N

Thank NVP for your reply, Do you have any example for the PA patterns or MA based signal

 

[timsk]

Thank NVP for your reply, Do you have any example for the PA patterns or MA based signal

Hi abhishek_300,
If you're wanting to establish the trend, then a trendline is the ideal tool for the job. There are two varieties: those that are drawn by hand and those that are drawn by your TA software.

For an excellent introduction to the former, read this: If You Can Draw A Straight Line (You Can Become A Successful Trader).
For the latter, try this: The 3 Duck's Trading System.

If you want a mix of the two and a simple (but not easy) approach to trading, then I recommend you take a close look at Point and Figure charting. If you're unfamiliar with it, check out these Articles: Point and Figure Charting: Part 1 - The Basics and Point and Figure Charting: Part 2 - The Bits That Aren't As Basic.

If you're still keen after reading those, check out dentist007's thread (he's the house authority on all things P&F): learning to read price action with p/f charts . Enjoy!
Tim.

 

[calgo]

all indicators,
lagging or not have fake signals.

Now its traders job to find a complementing filter to improve the indicator.

Lagging or not, you can make profit, it just depends how you use the indicator.

 

[tomorton]

I use a very simple filter before opening any trend-following position to make sure I'm getting in with the relevant trend. For my trades, the key time period I use as a reference is 3mths. I only accept a Buy if
1) price is above the 200EMA
and
2) the 50EMA is above the 200EMA
and
3) price change over the last 3mths is positive.

All 3 answers must be a Yes. This usually excludes about a third of all charts at any given time, which is a start.

 

[tsunamizawa]

I use a very simple filter before opening any trend-following position to make sure I'm getting in with the relevant trend. For my trades, the key time period I use as a reference is 3mths. I only accept a Buy if
1) price is above the 200EMA
and
2) the 50EMA is above the 200EMA
and
3) price change over the last 3mths is positive.

All 3 answers must be a Yes. This usually excludes about a third of all charts at any given time, which is a start.

list below meet your filter ?

picture upload

 

[geo9419]

MACD Trend Indicator

The Macd is a very good trend indicator but is a foolish to follow just an indicator for your trading desicion.

You need a system with a filter to tell you when the market is trending and when the market is ranging like the AdX for example. If the market has a trend then the MACD is a very good indicator. If the market has a range then the MACD is useless you need an indicator to show you the overbought or oversold level like RSI or Stoch for example.

 

[greedtrader]

Generally indicators follow the price and do not predict it
But you can confirm MACD by using other indicators
like the 200 moving averages (use it to define the major trend, then enter in its direction using your strategy, this can help also to avoid fake signals)

 

[tsunamizawa]

try 3 periods MACD
http://www.trade2win.com/boards/trading-systems/181578-3-periods-macd.html

 

[iMetaG]

Basically MACD works great in sideway trends (buy and sell signals). However if you see downtrend you entry only sell signals and opposite for uptrend. This is first thing you need to do to filter fake signals. Make new video so we can improve it more.

Cheers

 

[abhishek_300]

Basically MACD works great in sideway trends (buy and sell signals). However if you see downtrend you entry only sell signals and opposite for uptrend. This is first thing you need to do to filter fake signals. Make new video so we can improve it more.

Cheers

Thanks for your reply

 

[abhishek_300]

list below meet your filter ?

picture upload

Is this strategy for intraday or for delivery for long