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The video discusses how to use the Mobile Bands indicator in TradingView.com to filter false buy/sell signals. Another indicator called “Lazy Bear” is also recommended to identify potential trend reversals. With these indicators, traders can execute trades confidently, avoid bad trades, and catch good movements in the market. The video emphasizes the importance of confirmation and not rushing trades.
How to Filter False Buy Sell Signals in TradingView
Using the Mobile Bands Indicator
Introduction
Buy-sell signals are a crucial aspect of trading. To avoid losing money, traders need to filter out fake signals that can lead to bad trades. This article explores how traders can filter out false buy-sell signals in TradingView. The focus is on the Mobile Bands indicator, which is highly accurate in providing signals. The article also highlights another indicator from Lazy Bear that helps filter out noise and price movement in the market.
Why Filtering False Signals is Important
As a trader, executing the right trade is critical for success. However, the market is full of fake signals that can lead to bad trades. For instance, in TradingView, a trader can see buy-sell signals at various points, but not all of them are valid. Filtering out bad signals can help traders avoid bad trades and make better decisions.
Using the Mobile Bands Indicator
The Mobile Bands indicator is an accurate tool for providing buy-sell signals. Traders need to click on the indicator and use the default settings on a five-minute timeframe. The indicator provides signals for traders to execute their trades.
Filtering Signals Using the Lazy Bear Indicator
The second tool for filtering signals is the Lazy Bear indicator. This indicator highlights potential trend reversals by showing a histogram in green or red. When the histogram is green, it shows a potential buy signal, while a red histogram indicates a potential sell signal.
Understanding Signal Zones
TradingView has various signal zones that traders need to understand. These zones include the buy zone, sell zone, and consolidation zone. Traders need to execute their trades based on the specific signal that they get from the indicators.
Avoiding False Signals
To avoid false signals, traders need to confirm their trades before executing them. Rushing to execute trades can lead to bad decisions. Traders must ensure that their buy and sell orders are in the right zones before executing trades.
Conclusion
Signal accuracy is essential for profitable trading. Filtering out fake signals is critical to achieve this accuracy. This article has demonstrated how traders can use the Mobile Band and Lazy Bear indicators to filter out false buy-sell signals. Traders need to follow the indicators’ signals and understand the specific zones before executing their trades. By using these tools correctly, traders can avoid making bad trades and make informed decisions.
