Trading signals for instruments on the Forex market (forex signal) are determined as a result of technical analysis within the framework of a trading strategy created by a trader.
Forex market signals can be generated manually by a trader, or they can be generated automatically after programming the necessary parameters and conditions in the trading terminal or on any other platform.
Any good trading signal should contain:
- The name of the instrument by which the signal was generated;
- Operation direction (buy, sell) or the name of a pending order;
- Trade entry level (price);
- Stop-loss level (limiting losses);
- Take-profit level (profit fixing level);
- a description of the causes of the signal, on the basis of which a conclusion was made about its appearance Additional possible profit targets may be indicated (the first target is usually the most conservative estimate);
- graphic explanation of the signal with the applied technical analysis method.
Forex signals can be long term, medium term and short term. This is a conventional division based on which timeframe (30-minute, hourly, 4-hour, daily, weekly, or monthly) the signal is generated on. The older the timeframe, the more reliable the signal. Minute timeframes contain numerous market noises and may therefore be less reliable. In addition, it is highly desirable that the signals are confirmed by several proven methods and indicators, which is difficult to do in short-term periods.
Signals can be generated automatically according to parameters preset in the algorithm or manually, when several indicators or setups are analyzed, strong support / resistance levels are checked, candlestick combinations, option levels are studied, the positions of large players are revealed, etc. Each trader defines for himself a set of indicators and information sufficient to consider the resulting signal as a real Forex signal.Disadvantages of ready-made Forex trading signals
Signals are generated based on an algorithm developed by a specific trader for a specific trading system. They usually do not take into account either the size of the deposit, or the trading strategy and preferences of another trader who may use them. Technical analysis by itself does not guarantee 100% signal reliability and is just a hint for self-comprehension. Analysis of additional parameters, for example, as a result of option analysis, can show other stop-loss and take-profit levels, and will allow you to make a more reliable deal. Important news during the publication period can cause a strong movement in the asset price, canceling the previously received signal.
You need to be especially careful when using third-party trading signals with a small deposit level.
It is necessary to carefully weigh your risks, to comply with the requirements for money management specifically for your conditions. Only after making sure that the parameters of the signal do not contradict these conditions, it can be considered for use.
Therefore, it is important to independently analyze Forex trading signals based on your own technical or other analysis methods. In any case, third-party trading signals should be approached critically.
With extreme caution, you should use third-party trading signals when connecting advisors and automated trading based on such signals. Even if you consider the signal provider to be reliable, be sure to limit the risk level (the percentage of the deposit that can be used to trade based on automated signals).The duration of Forex trading signals
Real Forex signals always have a limited duration. However, it is rather difficult to predict in advance when this or that signal will be realized. In general, we can say that the lower the timeframe on which the analysis and signal generation is performed, the faster the signal can be realized or canceled.
With scalping, signals can appear for a very short period of time. Therefore, they are usually very simple and do not require a comprehensive analysis. Profit is achieved by making a large number of transactions and the volume of these transactions. The volume of the transaction also plays a significant role in strategies aimed at making a small profit in points on a specific instrument in a short period of time.
At the same time, if a trader adheres to a conservative strategy, then the signal should be rechecked in terms of various factors and systems, which will reasonably indicate the most probable points of entry and exit from the transaction.TeleTrade trading signals
Analysts of the TeleTrade group of companies publish trading signals for clients based on various analysis methods. At the same time, they independently use similar signals to make deals. This means that the company's customers can be sure that the signals supplied to them are generated manually after thorough analysis. Despite the high reliability, even these signals may not be applicable for the trading conditions of a particular trader and do not guarantee 100% reliability when making transactions. Trading signals are delivered to the company's clients through their personal account and become available when subscribing to the corresponding analytical service.
In addition, analysts of TeleTrade Group share their trading ideas in daily programs available to anyone on the official Youtube channel of the company. Deals are subject to technical analysis, recommendations for their execution are given, including specific entry levels and profit targets. Analysts demonstrate their actually open trades and orders, which are placed on the basis of the trading signals they generate.
Forex Trading Signals from Teletrade is a service that allows users of the MetaTrader 4 trading terminal to receive information regarding the timely closing and opening of positions in the Forex market.
Currently, this service is widely used among Forex traders. Forex signals give the trader clues: what currency pair and at what price it is better to carry out the operation, when to close the position, etc. As a result, the trader is able to get the maximum result with the minimum labor costs.
The use of Forex trading signals gives market newcomers the opportunity to receive information on specific transactions. In particular, this allows you to reduce the influence of psychological factors that influence decision-making, as well as gain experience in Forex trading.