What many traders don't get is this: 'false signals' are not a sign that the system you're using is bad. False signals are in most cases a sign for 'Big Money' at work. They simply push price up or down (price spikes), as to trigger pending orders, kill stop losses and... trigger indicators and/or trading systems into giving 'false signals' (which you'll only find out, AFTER you've opened a trade in the wrong direction. GOTCHA! :-)
Some things you can do in order to survive these dirty tricks: 1. NEVER move your stop loss in any other direction than your entry point! (you can run, or swim, but you can't hide for the 'Sharks' - they'll keep moving in the 'wrong' direction as long as there are people trapped, who are using too big a stop losses, no stop losses or... keep moving their stop loss to avoid getting hit, which opens them up for a big loss or even a margin call; been there, done that). 2. Wait for price to break the high (for a buy) of the candle that closed outside the 12 EMA and 72 SMA. 3. If the candle that closes outside the EMA/SMA is BIG (a potential 'trigger candle' - see above), wait for price to pullback to the 12 EMA, so you can open a very low risk trade, because price will be very close to your stop loss, a few pips below/above the low/high of that 12 EMA trio. Watching support/resistance levels (pivots, fibs, big numbers, etc.) is one more thing you can do to prevent getting tricked by the Big Boys, but don't take this too far, 'cause in the end you'll be setting yourself up for 'traders block' :-) Confidence is one of the qualities of a profitable trader, so, if you get too obsessed with 'false signals'/'market manipulation', that will have a counter productive effect on your trading too... Trade like a robot, but don't get tricked into every false move like them. That's it.
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