Forex trading signals are trading alerts by expert advisors in order certain trades to be executed by traders who have purchased this kind of signaling service. Forex signals are offered at monthly fees of $100 to $500. Some Forex Signals are offered even for free. Forex signals may be offered by individual companies or by Forex Brokers for traders in executive accounts. These signals may be offered through email, SMS, phone and online alerts.
3 Major Categories of Forex Signals
1) Technical Analysis Signals:
This type of trading signals is widely used among Forex Traders and based in the technical analysis using various indicators, oscillators, patterns and other methods of analyzing past activity data. Usually signaling using technical analysis is accompanied by stop-loss prices and other trading strategies. You trust the background and track record of the company or person issuing the signals, so you choose to trade on that basis instead of entering your own orders.
2) Forex News Signals:
These trading signals include fundamental news that they havenâ™t already incorporated in the current price of currency exchange. Forex trading signals are usually accompanied by deep analysis. Using Forex News Signals pre-assumes the existence of an efficient Forex Broker (in order to avoid slippage).
3) Combined Forex Signals:
Combined Forex Signals are combining technical and fundamental analysis in one package. So actually they incorporate past activity data and current market news.