$NASI - Chart Link- as I stated on weekend, for
the NASI, a confirmed sell would only come on a close below the low
of the candle where the 2 EMA crossed the 5 EMA on Friday, it may
not confirm and the NASI EMA's simply cross back up again so one
would just stay long if no confirmation on that cross occurs - the
confirmation method can filter out some false signals, but it can
also get you in later - give and take
so that whipsaw confirmation method applies to anything really.
You can use that to confirm a MACD cross for example, an RSI
crossing above or below a certain level, a Stochastic cross, and
when two moving averages cross over one another the confirmation
method can be used to filter out most of the whipsaws - here's some
examples of that.
here's a post from 10 years ago! where I show this method on
MA crosses
NASI whipsaw confirmation method
Posted by matt on 13th of Feb 2023 at 11:04 am
$NASI - Chart Link- as I stated on weekend, for the NASI, a confirmed sell would only come on a close below the low of the candle where the 2 EMA crossed the 5 EMA on Friday, it may not confirm and the NASI EMA's simply cross back up again so one would just stay long if no confirmation on that cross occurs - the confirmation method can filter out some false signals, but it can also get you in later - give and take
Great commentary on this confirmation
Posted by cozz101 on 13th of Feb 2023 at 12:11 pm
Great commentary on this confirmation method; very helpful
so that whipsaw confirmation method
Posted by matt on 13th of Feb 2023 at 12:22 pm
so that whipsaw confirmation method applies to anything really. You can use that to confirm a MACD cross for example, an RSI crossing above or below a certain level, a Stochastic cross, and when two moving averages cross over one another the confirmation method can be used to filter out most of the whipsaws - here's some examples of that. here's a post from 10 years ago! where I show this method on MA crosses
https://breakpointtrades.com/blog/post/222959/
it's a universal function that can be applied to most indicators for example