How to avoid false signals with MACD?

You avoid false signals with MACD by trading only in the direction of the higher-timeframe trend, confirming with price action or volume, and filtering crossovers through a long-term moving average.

To filter out false signals, use the MACD in combination with other tools of technical analysis, such as Envelopes and ADX. MACD is a trend-following indicator, which means it sucks in sideways markets, where many traders get chopped up using it in consolidation phases.

Skip the indicator entirely in choppy ranges where crossovers whipsaw constantly.