Filter signals against the trend

See only those signals that match the market trend👇

The filter is needed to reduce noise and remove some signals that go against the current price direction.

This parameter is useful if there are too many signals or many of them are entries against the movement. Trading against the trend increases noise and the number of false signals, and the filter helps to reduce that.

👉To choose a filter - open settings by clicking ⚙️ next to the indicator name and select the desired filter in item 3️⃣ (start with the price channel)

How the filter works

The purpose of this filter is to determine the trend and hide from you all signals that go against the market.

There are different ways to do this - I added all 7 trend indicators available in Midas to the filter.

Price channel

BUY are shown only when the price channel is green and pointing up, and SELL - only when the price channel is red and pointing down.

EMA

Money flow

Trend ribbon

To start, I recommend using the price channel or EMA 200 (the most effective filters)

What will change

After applying the filter to signals against trends, there will be a number of changes:

• there will usually be fewer signals;

• some entries against the movement will disappear;

• the chart will become "cleaner".

Scroll the chart back and see how the behavior of signals changes on your asset and timeframe. You can test settings on history and then use them in your strategy.

Common mistakes

1. Choosing an unclear filter instead of the price channel

For example, the trend ribbon, without understanding how it works. Result: signals behave unpredictably.

2. Not checking settings on historical data

The same filter can work differently on different assets and timeframes. Settings should be tested for your strategy, timeframe and assets.

3. Using signals “blindly”

Signals are only notifications of the start of a movement; the trading decision is made after analyzing the chart.