How to avoid false signals using MACD?

QFFT.

Indicators give false signals because they are lagging in nature. Just don't use them.

 

i like 5,13,1 settings the best. macd isn't a good indicator as a signal, best for setting up trades a potential trading opp

 

How utterly sublime that your post should so rhyme
As you embark to unfold your story untold
Thus becoming a poet before you know it.
And as the children sit up and as they try to listen
You sing of the rain while in their ear you're just pissin'.

 

Tdog,thought you were a trader,above this sort of post

 

Why, was my cadence off?

 

That's very odd, I find it works every time, I wait for the crossover and then go against the trend! that's right, ignore it, hence spooking the market, try it, if it didn't work, I'll give you your money back.
Fast Stochastics is quite neat as well, just wait for the crossover then follow it, so to re-cap go against MACD and follow Stochastics. Bob's your uncle!

 

poem was good, just didn't like the slant

 

i'm an idiot when it comes to mathematical equations so i'm just trying your recommenadtions on macd, do you still have stoch set at 10,10,20,80

 

You don't have to change the settings. You have to understand the following. When a market is trending up you will notice that the MACD moves up and down but remains above the zero line and the inverse is true for a downtrend. So in these cases there will be plenty of false signal line crosses, the signal you should follow instead is, market is trending up while MACD is above zero. Then the market will go back into a phase where sinal line crosses work. When trading using MACD you must be aware of these two different conditions and act accordingly.

 

did you word that correctly?