Forex trading signals are, essentially, trade ideas indicating the market trends in real time. Trading signals are used by novice and professional traders alike. Most forex signals include the position type (buy or sell) as well as the take profit and stop loss levels.
Forex trading signals systems are used by forex traders all over the world to aid them in making critical decisions about their trades. They are one of the most important tools a forex trader has and almost all traders choose to use them in one way or another. There are many types of forex signals systems, some are offered for free while others for a fee but take in mind that a trustworthy service should include information about take profit and stop loss configurations.
Consider testing your skills on a demo account before purchasing access to a signals system so as not to throw your money away. At Benstride, you can get access to an advanced and professional signal service for free on our telegram channel! Sound alerts, live email and mobile notifications, entry price, and signals performance reports are some of the awesome features available to Benstride’ premium account users if you need premium package you contact us for more details.
The typical routine is to receive the trading signals directly to your e-mail, WhatsApp or to your phone by a text message. This routine improves your ability to track your trades and ensures you don’t miss buying/selling opportunities because you didn’t notice them or because you were too late.
Signal systems have become very popular among forex traders and yet we encourage you to verify the trustworthiness of the system before making an expensive commitment. As mentioned above, using a free signals system with a demo account is a great way to test your ability to earn money before risking any real money out of your pocket. Once you feel comfortable that you can earn money with your demo account feel free to move on to a real account and make some real money.
Keep in mind that signal systems are not compatible with all time frames. Scalping is a method that will not work with signals as the signal will already have closed by the time you see it. When working with a signals system consider trades with longer time frames as that is where they are most useful.
So how does the forex signals system actually work?
Every Forex signals system is unique and relies on a different analysis of the market but overall there are two main methods that guide the market experts who produce the signals.
The first is a technical analysis of the market including all the past information about the price and trend that is available. The second is based on current events and the analysis of how they might affect the price action over short and long periods of time.
Some signal systems are based on an automated computer analysis of the market. An experienced trader teaches the automated system to react to different events and the system produces the signals on its own. A major upside of this kind of system is that it excludes the negative effects of human psychology which might affect a human’s judgment and cause him to make a wrong decision. The downside is, of course, the loss of actual human judgment and the inflexibility of a computer system.
The Benstride signals system is based on trading analysts who insert their decisions directly into the system and turn them into buy/sell signals. We base our signals mainly on technical indicators which are followed very closely by our experts alongside with a fundamental analysis of the market and trend. ‘Support and Resistance Levels’, ‘Fibonacci Levels’, ‘Bollinger Bands’, ‘Breakouts’, ‘Moving Averages’, ‘Oscillators’ (trend determiners), and ‘Stochastic Lines’ (overbought/oversold indicators) are the technical indicators favored by our analysts.
The Fibonacci indicator is one of the trading tools in our arsenal.
The currency pairs which provide the greatest challenge for analysts are GBP/USD, USD/CHF, USD/JPY, and EUR/USD. All signal systems have flaws and none are accurate 100% of the time. Use these signals as a tool to better your trading system but do not rely on them fully as they are only one piece in an intricate basket of tools and strategies which make up a successful trader’s trading toolkit.
Vincent Nyagaka is a Professional Trader, Analyst & Author. He has been actively engaged in market analysis for the past 7 years. He has a monthly readership of 100,000+ traders and has taught over 1,000 students since 2014. Vincent is also an experienced instructor and public speaker. Check out Vincent’s Professional Trading Course here.