I talked about the importance of having a very strict trading strategy, to overcome the emotion. Emotion is human weakness and unless you have strict rules to follow, you will make bad decisions if driven by emotion.
A typical strategy to reduce the "fake" signal is to have a "confirmation" system. In this context, confirmation means we need to wait for 1 or 2 more sessions to see if stock indeed hold or break the line. For example, if stock drop below 200EMA, we need to see if it fails to climb "back" after 2 sessions. This is a confirmation. You can't let emotion taking over, as when stock drops down to 200D EMA, usually panic kicks in. Unless you have a strick trading rules to follow, you are likely to sell in panic when MM manipulate you.
This is number 1 reason why so many retail investors got shake off by MM.
Now, how do you define 2 sessions? Some people use 2 trading days to be very conservative. Some use 4 hour chart (ir, 2 4 hour bars. Whatever system you use, you want to backtest it, and follow it.
There is no perfect trading system. Anything you develope is guaranteed to be wrong at some time. What you need to find is a trading strategy that works correctly 70% of time, and also when you are wrong, admit you are wrong and take the loss
