Forex trading signals are famous tool used by FX traders worldwide as it guides them to making decisions about their trading positions at a specific time. Some signal providers offer their service for free whilst others confer them through a paid subscription system. However, FX traders have to take into consideration that a credible signal provider should detect Take Profit and Stop Loss levels and not just a direction. Shrewd investors could open a demo account supported by free signal notifications as a test for a while before putting their money into a real account.
Most of FX trading signals systems rely on sending signals directly to your e-mail or mobile phone via a text message. This method enables traders to remain alert all the time to any buy/sell position in order not to miss a chance or enter a trading position when it is too late.
It is important to notice that scalping is not compatible with signals since a signal will be activated and closed before you even open to see it, as scalping targets just 3-5 pips, which could be done in few seconds. A trustworthy signal provider should send signals with longer time frame to allow you to get the most of out of it.
How it works?
While every FX signal depend on different analysis, mainly there are two key ways of producing a reliable signal. First, technical analysis, which is a trading tool that predicts future movements and trends using various statistical tools and analyzing charts of price movements. Second, fundamental analysis. It mainly hinges on tracking key economic data and events that could weigh on the price action.
Signal trading systems could be either automated or based on trading analysts. An automated computer signal is simply programmed by an expert trader who inserts tools that can act automatically in different situations. One of the merits of this system is that it excludes any physiological human vibes that could lead to wrong analyses and thereby incorrect decisions. On the flip side, it lacks flexibility and human vision.
Trading signals by D1STP are based on analyses conducted by trading experts who translate market movements into buy/sell signals. Our experts base their signals on technical analysis along with fundamental analysis to get the most precise trading decisions. A mix between various technical analysis and tools ‘Classic and Harmonic,’ Trendline and Channels,’ and ‘Stochastic Oscillators;’ in addition to tracking economic calendar data and policymakers’ speeches and announcements.
FX trading signals are not accurate 100% of the time. Hence, a successful signal provider should win most of the trading positions but not all of them. Some traders depend on signals in addition to other tools and strategies to maximize their gains and minimize their losses.