If technical analysis means are confirmed it may be noticeable because price actions make it noticeable. It happens because prices bring indicator movement but not vice versa. You will probably find many places where indicator lines cross. Here you need to make a decision about the definite crossing. If prices go in a wrong direction, later it will not look like crossing, rather like just a contact.
Now you should comprehend your strategy critically. It is necessary to count losses on false entrances and if you shift the final decision moment about crossing, – you should pass a considerable part of movement and to reduce profit of testing. This note concerns crossing of different moving averages, levels, channel lines etc.
The same happens when it comes to oscillators. Pay attention that they often stick to high and low levels as they often make a false reversal.
Be cautious about indicators and oscillators. You shouldn`t look at their last level as time of the last bar has not come to its end. Your tested strategy should be grounded on final indicators value but not on intermediate one. No indicator may show you break and crossing as the bar has not come to its end even for the previous and during the last minutes of an hour it may have a different value.
If you undertook to search for entry strategy on the schedule of the small period, you risk strongly to be mistaken, having accepted “manners” of the market of several last days for true in an ultimate authority. You should be engaged in the analysis of a longer interval of time and to see many strong movements of the market against your indicators during “five-minute”. And if you do not put Short stop-loss every time, you, most likely, will get to one of strong movements against you, and many small victories will be ruled out by one huge loss.
When you test a trading strategy, it is necessary to understand that if, for example, you enter at the beginning of an hour you will be one or two minutes in the beginning of new hour to enter into the market more often or to expose warrants, and sometimes and it will not be.
Those movements of a following bar which we see in the history, very often occur first minutes of hour or a half an hour, under an exit of the fundamental data or someone’s performance. Certainly, it occurs not always, but it is frequent enough seriously to cut down the profitableness shown by testing.
In general, it is pleasant to see strong movements in correctly predicted party in the history analysis. The problem is that these strong movements occur very quickly. To enter into the market in such situation it is very difficult and dangerous. Indicative quotes which you see, lag behind the market, the real spread extends, quotations are given for very short time, – you cannot have time to confirm them and if will be in time, – not the fact that the transaction will take place.