One innovation that came as a result of growth in the financial industry is Forex signals. These signals are designed to solve one of the most challenging activity that traders have to perform — to identify the right trading opportunities and do so at the perfect time.
Forex signals can be defined as trading recommendations or ideas on financial assets that have already been specified to be executed at a time and price that has been predetermined. The best thing about these signals is that they can help you enhance your trading activities regardless of your experience and skill level.
If you are an experienced trader, then these signals will do you a lot of good as they will give you the chance to increase your profit margin and give you even more experience.
For those who are still new to Forex trading, these signals can help you make money as you continue learning about how to trade profitably in the markets. Another benefit you can enjoy is your learning curve will be greatly shortened. This is made possible by Forex signals because they allow you to get a deeper insight into the specific options they are based on, therefore, helping you understand the logic behind the assets you want to trade.
Types of Forex Signals
Forex trading signals can be broadly classified under three categories as follows:
Automated vs Manual
This categories classifies trading signals based on how they are generated. Signals classified as manual are those that are generated by either a seasoned and/or a professional in financial markets. Automated signals, on the other hand, are generated by computer programs that track and analyze the price actions of a certain asset in a specific market based on coded algorithms.
Paid vs Free
Signals under this category are based on their service providers price. Some signals are offered free of charge by their providers either for a trial period or for an unlimited period of time, while others are offered at a price. The provider may require you to pay a one-time fee to use their signal or require you to pay a monthly/yearly fee for the same.
Entry vs Exit
Trading signals based on the level of detail of a trade are classified under this category. Entry signals are those designed to only open trade positions in the market, while exit signals are those that can close open trade positions currently running in your trading account. These signals are mostly used by those with long term trades. For short term intraday traders, the signals to use are intraday trading ones.