Remove false signals HELP

Hello,
I wonder how the rest of you have solved the problem that occurs when a security will close above or below a value ( eg . An average value ) .

The problem is that the signal indicates when the price is above the average. But to not get " false signals " I must look a period backwards.

But if I have 1 hour period, there will be at most one hour delay on my signal .

How are the rest of you solved it ?

Grateful for ideas and suggestions

You would only have a delay of one hour if your signal came very close to the open of a new bar and and in some cases your delay would be minimal if your signal came towards the end. How much of a problem this is depends on how long you keep your positions open on average. The shorter the duration, the more of a problem this is. It would also be helpful if you knew the win rate of your signal. If your win rate is acceptable then don't worry about it. You could always chose to filter your entry based on range. If the current bar close is more than x points from your signal...don't take the trade.

You might want to see if your strategy works on non time bars...tick or volume bars in particular. If markets are moving fast you would most likely get confirmation much sooner. If your market is 24/5 try taking the ATR over the week (120bars on a one hour chart) and then create a tick chart that is roughly equivalent to an hourly candle during regular trading hours. See if your strategy responds to the change.

Note that faster may not always mean better and don't get caught out by randomness. It is pretty hard to tell if a strategy improves because you made a change to make it better or if it improved because the strategy was just lucky during your testing period.