Hi everyone,
I am using the below strategy using MACD and RSI for buying scrips in the short term. But how we can identify the false signals generated.
Enter Strategy:
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When RSI(25) crosses over 30 (And)
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When MACD(7,13,9) is greater than MACD-Signal(7,13,9)
Exit Strategy
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When RSI(25) crosses below 70 (Or)
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When +DI(25) crosses below -DI(25) (And) ADX(25) greater than 25
To eliminate the false signals, I tried to use
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ADX indicator to determine the strength. But this was not helpful. ADX was low both in true positive and false positive cases.
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Aroon indicator to determine the strength. This also didn’t help.
Can you help me on this?
Example of false signal:
