A forex signal or forex signals are suggestions made and given by Forex Experts or Forex Analysts in terms of a pair of currencies, to subscribers of such Forex Signal or Forex Signals Services.
Forex Trading signals are suggested buy and sell points with price targets and stop-loss levels delivered by signal providers to traders. Interestingly, these signals are sent by email, website, SMS, RSS, Tweets or other communication methods. Other names given to Forex Signals are called "Forex Robots". Some services even offer auto-trading, allowing you to auto-execute their signals directly into your brokerage account.
The Four Major Categories of Forex Signal or Forex Signals:
- Free of Charge
- Paid Forex signal or signals from one or more Signal Providers
- Paid Forex signals that has been compiled from various sources
- Forex Signals given by Forex Trading Softwares that are found within the program itself.
What are the features of Forex Signals?
Scams and Frauds of Fraudulent Forex Signal Providers
- Forex Signals offer the exact or approximate entry, exit and stop loss figures for trades on one or more currency pairs.
- Graphical Interpretations provided. (People usually find this complicating!)
- A trading history showing the number of pips profit/loss per month and/or the risk/reward ratio and actual trades. Sometimes (especially in the case of forex robots) this may be shown as back-tested results
- One-on-one coaching, or extra interaction with the signal provider such as commentaries, discussions, etc.
- Account management whereby a subscriber's account can be traded by the signal provider
- Educational resources either via the internet or phone
- A trial period that is either free of charge or paid at a lesser fee.
Beware that Forex has been misrepresented as a get rich quick scheme and hence many review of Forex Signals have been generated. Forex Investors are cautioned about the reliability of Forex Signal Sources. Example: Forex Peace Army offer best practices to Forex Investors regarding Fraudulent Forex Signal Providers. Methodologies and trading strategies
Most Forex signal providers provide Forex Signal or Forex Signals based on technical analysis and a minority work on fundamental analysis or price action. Technical analysis, like ichimoku and candlestick charting are adopted to show both short term and long term price trends. This provides the Forex Signal Provider the flexibility in supplying a range of trade options. Fundamental analysis gives longer term trade ideas. Price action gives extremely short term trade ideas, often more suited to scalping.
Forex Signal trading can really work especially to very busy individuals. For example, employing an analyst to alert you when it's the best time to purchase and sell a particular currency, you'll save a lot of time and effort about making the particular analysis alone. With this particular benefit, you are able to leave all the actual analyzing towards the analyst or perhaps the broker.
There is nothing wrong with forex signal or forex signals in general. Because if Forex investors understand that they are just a service or a system that generates forex signal or signals, they can actually leverage on their insights and make a trade that is advantageous to you.
Read more on Forex Signals...
What are forex charts and how are they used?
What is a Forex Quote?
Are free forex charts important in forex trading?
All that you need to know about a free Forex signal
Free forex signals - the secret of trading
Are Forex alerts useful in the foreign exchange market?
What you need to know about forex indicators
All that you need to know about a forex market maker
What is Forex scalping?
What is the Forex Signal service?
Complete information about the Forex technical analysis
Forex Trade Signals - How can they be used?
How can a free forex chart help your trading business?