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What are Forex Signals?

forex signals

Forex signals are the most advanced innovation in the forex market which has become the backbone of
the market now. And everybody talks about them. If you are new into Forex Trading and going through
your forex education then learning about forex signals should be on your high priority list.

The Basics of Forex Trading

In definition, forex signals are those tips or recommendations on a particular forex commodity that are
told in advance, and those need to be executed at pre-determined time and price.

If you are new into the forex market and learning the nuances of the market then signals to give you a helping hand without you having to worry about following the market trend all the time.

And the market is highly volatile where every minute price graph is going through changes. In these
conditions, if there are some signals which can tell you in advance that at this time the price will be this
and then you can get an entry or exit thus making a profit or preventing loss – then these are good for you.

Forex signals are provided by signal providers who are constantly in touch with market trends and use
automated as well as manually handled algorithms to assess the trends and points at which trading should
be done.

These forex signal providers use high-speed communication mode to give you signals such as
text messages, WhatsApp, telegram, and more.


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If you are looking for the best forex signal providers, then you can follow our post here.

There is some signal type which is used constantly in trading-

1. Action
If the signal is telling you something very direct like – buy or sell. That means that is a call to
action and these types of signals are action signals.

2. Stop Loss
As the name suggests, based on the market analysis you will be provided with a time and price
and if the price touches that mark then you need to exit from the trade to prevent any loss.

3. Take Profit
Just opposite to Stop Loss Signal, take profit works by telling the mark when you will start to
gain profit.

4. Current Market Price
An informative signal, CMP tells you the comparison of prices of a currency pair thus not asking
you to take any action.

You may opt for signal services, but first, you should also know how to read these forex signals,
otherwise, how would you be able to read them and take action based on them?
Suppose you get a signal like this – Sell USD/CHF at CMP 0.8309 – SL 0.8343 – TP 0.8297 – Now break
up this signal. First, there is a call to action signal i.e. To Sell, and the currency pair which is told to be
sold in USD and CHF.

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The current market price is told to be 0.8309 and the stop-loss signal is 0.8343 and taking profit signal is telling the mark of 0.8297. Simple, right? These types of signals provide you all the information you want and understanding them is not that much complex process.

In trading, information is the key and forex signals provide them but keep in mind that no to signal
providers are the same and each one of them may differ at the same currency pair at the same time and
price. It is all based on the market analysis by individual experts.

Understanding your risk tolerance is the measuring step to stay long in the market. And also, last but not                        least- don’t trust blindly. You should also look out for market trends and understand what is going on.                               It will help you in understanding the signal better.

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