Forex signals are indicators derived from a combination of factors, which suggest to traders the right time to buy or sell a certain currency pair. An example of forex signals would be the Moving Average that can point to a reversal of a trend and signal that’s time to sell your currency pair.
Traders that are familiar with technical analysis often use a number of forex signals to find trading opportunities and guide their strategy. One of the biggest advantages of using forex signals is that it takes the emotions out of the equation.
In turn, that allows you to make only data-driven decisions and get rid of your gut-feeling trades, which can often get you in trouble. The only problem with signal trading is that newcomers aren’t sure how to find the best forex signals by Forex Robot Nation for their particular trading style.
However, we’re about to make things a lot easier for you…
How to Use Forex Signals to Your Benefit
Before we can move on, you need to learn the basics of signal trading. One of the most common forex signals consists of areas on the chart where both sellers and buyers converge. In the business, these are known as support levels (below the market level) and resistance levels, (when above the market level).
Forex traders can have use of these chart regions to place buy limits ahead of support levels and sell limits ahead of resistance levels. Some traders also place stop-loss orders below the support and above the resistance level. You should consider making this a major part of your trading strategy. Now, let’s discuss some of the major forex signals…
MA (The Moving Average)
Technical indicators that are based on the price include moving averages. These generate popular trading signals when a short-term MA crosses below or above a long-term one. If the short-term average cross above, then a buy signal is generated. A sell signal is generated when the term cross below the average.
DMI (The Directional Movement Indicator)
The Directional Movement Indicator is useful when a trader wants to know if the price of a certain pair is moving in a particular direction or not. You can also use the DMI to see if a trend you’re interested in is strong or not.
HV (The Historical Volatility)
By calculating the Historical Volatility, you can see how much risk is there in taking a trade based on historical price action. That can give you a better idea of what sort of position size you should take, based on the weight of the risk.
RSI (The Relative Strength Index)
The Relative Strength Index is a momentum indicator with a range from 0 to 100. This particular indicator can signal if there’s a possible trend reversal on the rise. It will also show you when the trend reversal is crossing into extreme territory. An overbought condition is signaled when the RSI level is above 80 and when the level is below, it can signal an oversold condition.
Oscillators are technical indicators that are used by technical traders to analyze the market and see if the conditions are oversold or overbought. The aforementioned RSI is one of the most popular indicators of this type.
Top Picks for Best Forex Signals Providers
In spite of what some signal traders claim, you can’t really make a fortune following someone’s signals overnight. Because of claims such as these, many signal providers are too afraid to publish independently conducted studies of their trading results.
If you subscribe to a service without taking a look at its results, you’re making a big mistake. One that could end up costing you a lot of money in the long-haul. To help you get started, here are some verified, reviewed providers of best forex signals.
Forex.com is possibly the most well-known forex broker based in the United States. Its clients all receive free access to the Advanced Trading Platform-tools, which provide pretty accurate signals that can be used to enter and exit trades.
The company also provides an Autochartist tool, which scans the entire forex market and points out trading opportunities for users. Moreover, the tool can help you identify chart patterns that happen in markets that you want to trade-in.
One of the longest-running forex signals platforms, 1000pip has provided high-quality signals for the better part of the last decade. The signals 1000pip provided in the past have performed reliably even in the most challenging market conditions.
Possibly the biggest benefit of 1000pip Builder is that the broker can provide its performance with verified historical statistics. Not a lot of signal providers out there can say that. However, 100pip has such confidence in their signals that they allow 3rd-party organizations to track them.
Forex Signals Factory
Are you looking for a truly free provider? Most of the so-called “free forex signals” come with hidden costs. But unlike these services, Forex Signals Factory provides signals without asking for a dime in return. That makes FSF so good for newcomers to the industry.
By using FSF, you gain access to around 15 signals a day. All of the signals are in the major currency pair, as well as different assets. By using the service, you also gain access to weekly and monthly signals, which allow you to develop a long-term strategy.
The best forex signals can impact your profit potential significantly. That’s why you need to choose carefully and find the ones that fit your needs as a trader, your short- and long-term budget, as well as your risk tolerance and trading style.
If you’re a beginner, all of this might be a lot to take in at once. You just need to be patient. Do additional research, talk to other traders, and try our recommendations out. Once you become more familiar with the world of signal trading, you’ll be able to find suitable signals for you.