False Signals

False signals in crypto trading refer to situations where a technical indicator, chart pattern, or another form of analysis suggests that a certain trade should be made. Still, the trade ultimately results in a loss. False signals can occur for various reasons, such as misinterpretation of data, faulty indicators, or market manipulation. One example of a false signal might be a bullish crossover on a moving average indicator, which suggests that an asset's price will rise. However, if the market…