False signal

A signal that fires and then does not follow through

In detail

The level you thought had broken is taken straight back, or the price falls right after a buy signal. Every indicator produces these at some rate and none can remove them, which is why what you do when one fails has to be decided beforehand.

Example

Clearing $1,050 one day and falling back to $1,020 the next.

Related terms

Read in the app (App Store)

For learning, not investment advice. Decisions are your own.

StockFit · TrueNorthLabs Inc.