The Handbook of Technical Analysis + Test Bank_ The Practitioner\'s Comprehensive Guide to Technical Analysis ( PDFDrive )

THE HAnDbook of TEcHnIcAl AnAlySIS

figure 11.27 Open-Close Moving Average Crossover Signaling Entries on the Daily
of GBPUSD.
Source: MetaTrader 4

figure 11.26 Death Cross on the Daily of Gold.
Courtesy of Stockcharts.com

below it is simple enough, as long as a suitable price filter is employed. As we
learned in Chapter 5, filters may be:

■ (^) Price based
■ (^) Time based
■ (^) Event based
■ (^) Pattern based
Weaker trends tend to generate more false buy and sell signals. One way to
reduce the incidence of whipsaws and false breakouts is to trade the support and