How To Find The Best Forex Signals | Forex signals are best described as detailed trade recommendations or ideas. The sources of the best forex signals are usually experienced traders. Scores of online entities provide forex trading signals, for a fee, or even for free.
Due to the fact that a forex signal is in essence a small bundle of text-based information DELIVERED TO YOU via WhatsApp, Telegram and Email, A Forex signal providers will deliver their “product” through live messaging, email, Skype and various dedicated apps. There are even forex signal Telegram channels out there.
The trading signal ecosystem has created fully-featured, dedicated trading environments as well. Such signal-based trading solutions allow signal providers to use interactive charts, to stream video and to monetize their activities.
You should also pay attention to time forex news frames. As a result of their nature, trading signals in FX do not work well for strategies such as scalping so FxPremiere put together a signal that last from 20 mins to 4 hours. By the time you receive the signals;
Every FX signal system is a reflection of the personal methods and preferences of the signal providers analysis. Therefore, every such system is different for each signal provider.
Still, there are two large categories into which all of them fit:
- Technical analysis-based
- Fundamental analysis-focused.
Based forex signal systems derive their trade ideas from past price movements coupled with various mathematical artifices.
Signal providers analyzing current events and deriving their trade opportunities from the likely impact of such events.
Introduction To Forex Signals
Forex signal systems are among the most important tools in the arsenals of profitable traders. Beginners as well as advanced and experienced traders use them.
There is in fact an entire industry built up around trading signals and various trading recommendations.
As with most goods, quality should always come before quantity in regards to your forex signals.
Quality forex signals do not just tell you when to jump into a certain trade and the direction of said trade. They also include detailed information on the configuration of your Stop Losses and Take Profits.
Finding The Best Forex Signals
The quality of your forex trading signals will make or break your profitability. Since there is really not much skill involved in applying these signals, the only variable in the equation is forex signal service selection.
You should always go through this short checklist before you make your move in this regard.
- Time Zone – Before you start, take a look at the time zone of the provider. You want your trading signals to trickle in while you are awake. They are of not much use otherwise. If there is no other way to learn this bit of essential information, sign up for a free account.
- Full Analysis – Go for the total package. Low-effort signal providers, such as those only giving you the entry price and the SL/TP, should be ignored. You need to know why your signal is supposed to work. To that end, you need your FX signal provider to give you charts and proper market analysis as well.
- Focus On You – Make sure the style of the signals fits your trading needs. Besides the two mentioned basic types, Forex signals run a wide range of styles. There are short- and long-term signals, signals focused on intraday breakouts, etc. Profitability should always be your top priority. You will however find it easier and more enjoyable to use signals that fit your personal style.
Finding MT4 forex signals is a different story. In the Terminal window, there is a Signals tab. This section features scores of trading signal providers with handy graphs of their trading performance available as well.
Forex Signals for Technical Analysis Traders
For technical analysis focused traders, making use of forex signals opens the path to a much more complete trading FX experience.
TA is generally suitable for the trading of short term, supply/demand inefficiency-induced price swings. Fundamentals on the other hand lend themselves much better to longer-term, longer time-frame trades.
Forex Signals for Scalping
While longer-term trading signals aim for hundreds and even thousands of pips in profits, there are some FX signal providers who will settle for a few pips at a time. These providers offer short-term forex trading signals, which lend themselves well to scalping.
How To Use Signals
Opening a position based on a forex trading signal is a simple exercise. Once you learn to “read” these signals, it will be a walk in the park to put them to use.
- – Your first step is to log into the signal provider’s channel. This can be a webpage, a Telegram channel, a Skype chat etc.
- – Grab the data delivered by the signal provider and copy it to your account.
- – Wait for the trade to close and pick up the proceeds.
What Is Included In The Best Signals?
More precisely, a signal should tell you the following:
- The instrument/currency pair you will be trading (EUR/USD, BTC/USD, gold, silver etc.)
- The direction of your trade. Next to the actual asset price, a BUY or SELL action is indicated.
- The status of your signal. In regards to status, forex signals can be Active, Get Ready and Closed.
You need to be aware that trades can be closed in three different ways. Besides the automatic closure triggered by the SL or the TP, the provider can close it manually as well.
When it deems the conjuncture appropriate, the provider will recommend the closing of the trade. In such cases, explanation is provided in the comments section, together with the closing price.
Under certain circumstances, the signal provider may even recommend the extension of the TP, to increase the profit margin.
Free Forex Signals
Signal service providers generally use free forex signals for promotional purposes. They make them available looking to sell some sort of service or product further down the line.
As a promotional vehicle, a free forex signal cannot really afford to be of inferior quality. Sometimes however, that is exactly what transpires.
A premium signal service needs to deliver from the very beginning. Since such premium forex signals represent the bread and butter of the service provider’s offer, they are usually of an outstanding quality.
Let us not lose sight of the fact however that no signal provider will ever guarantee winners. No one will ever put out winners only either.
Live / Daily Signals
Live/Daily trading signals are in essence run-of-the-mill forex signals, which are delivered with higher frequency. Such signals are therefore more suitable for intra-day trading.
Copying Trades and Social Trading
Social trading or copy trading is about using the trading signals provided by more successful traders.
As mentioned, MT4 offers a Signals section, where it displays the trades and statistics of those who decided to share this information with the community.
The system rewards such traders for their “signal-providing service”, through fees paid by their subscribers.