What is Forex Signal?

A forex signal is a recommendation to enter into a trade the currency pair at a particular price and at a specific time. The signal is generated by a human analyst , or an automatic Forex robot, which is then provided to an individual subscriber to Forex Signals. Because of the speed of signals, they are typically sent via email, web site as well as RSS, SMS tweet, or any other rapid methods. In a number of countries, signaling services have to be registered with the authorities.

Contents

1. Types of services.

Two typical features provided from Forex Signal service companies

3 Fraudulent activity and scams

4 Strategies for trading and methodologies

5 See also

6 References

Services of various types

Services offered are classified in four different categories.

Free/unpaid signaling

Paid signals received from one service through personal or algorithmic analysis

Paid signals aggregation from several signal sources, or "systems'

Signals provided via trading software installed on the computer used by the trader Also known by the name of a Forex robot, or EA (Expert Advisor)

Common features provided from Forex Signal service companies

The typical forex-signals are provided by a well-known service.

The primary services offered by these forex signal companies include:

Accurate or near-to the minute entry, and Stop loss numbers for transactions that involve at least one currency pair

Supporting graphs , analysis or graphs for the signals

A history of trading that shows the amount of profit or loss in pips each month, or the risk/reward ratio as well as actual trades. Sometimes (especially for the forex robotics) this can be presented by back-tested data

One-on-one coachingor interactions with the provider of the signal for example, comments, forums or other.

Account management in which a subscriber's account may be exchanged by the sign service

Educational resources are available through the internet or by telephone

Trial period for an unbeatable price

While these are the primary attributes of a signal service provider however, not all provide the full range of services.

Scams and fraudulent activities

Main article: Foreign exchange fraud

Forex is often portrayed as a way to make money fast, there are numerous companies that provide signals with a questionable quality that do not meet clients' desires for profits.

Strategies and methodologies for trading

The majority of signal companies offer signals that are based on technical analysis, and some focus with fundamentals or market analysis. Analysis of technical aspects, such as candlestick and ichimoku charts display both long and short term price movements, giving the signal company flexibility in providing a variety of trade options. Fundamental analysis provides longer term trade options. Price action provides very short-term trade concepts, and is often more suitable for scalping.