Question: How can the MACD prevent false signals?

Question: How can the MACD prevent false signals?

Answer

Many trading systems involve receiving signals from several instruments at once. MACD can be used as a filter (additional confirmation) for other indicators. You can also filter signals by analyzing the chart on different timeframes. For example, if you choose a daily chart where the histogram is growing in the positive zone, then only long positions should be opened on smaller timeframes. This approach will help reduce the percentage of false positives.