How to avoid whipsaw

Hello,

I'm new to technical analysis (while previously depends heavily on fundamentals). I'm currently using MA, Stochastic, and MACD as my trading indicator.

However lately, I got a lot of whipsaw from my traded equity (I exclusively trade stock, not futures nor forex). Does anyone knows (and willing to share) how to avoid this?

FYI, I'm using 5-20-50 EMAs (with triple cross-over method), MACD (12,26,9), RSI 14, and Full stochastic (14,3).

All help will be very much appreciated, thanks!

Oskar
PS: I'm usually swing trading, holding the stock between 2 weeks - 1 month

 

switch to day trading

and don't worry about whipsaw in day trading

simply enter trade, place trailing stop and check back at closing

don't even look at it, I am serious don't even look at it

but of course you need to have a system
these indicators you mentioned are average and not very good

try combination of indicators like pivots ETC

oh and ozzy, get 500 bucks tech analysis software, that goes without saying

 

whipsaws come with the game. Learn to live with them. If your using a trend following system dont trade it during choppy markets. Easier said than done but ull need to do some research on how to detect choppy from trend.

 

ozzy,

For now use an ADX indicator and stay out if it's below 17. Over time you'll just know when to stay out based on price action.

 

The best ways to avoid whipsaws is to stop trading

 

@Freelunch: I thought you'll never use the stock again . Anyway regarding your posts, yes I already have a $500 technical software (metastock -- particularly like how I can program my own indicators).

Care to share what system are you talking about here? I know that those indicators are for beginners (hey, I am beginners on technical trading ). I'm trying to dig deeper on price channels, MA envelopes, and pivots in the mean time

@aus_SPIder: Care to share how to detect choppy trends?

@mtwokay: Thanks for the advice, I'll look into it

@trend_guy: no that's not an option for me

 

Then get use to them, they are part of the game

 

I'm aware of that and that's why I'm looking a way to avoid it or at least minimized it.

 

whipsaw is horizontal trend......trend is friend

 

Best way to minimize them...

learn to avoid that first eighth... as Livermore said, it's one of the most costly eighths in trading.