Trading signals for forex trading

Understanding Forex Trading Signals

Forex trading signals provide traders with insights into potential price movements in the forex market. These signals can be categorized into two main types: fundamental and technical.

• Fundamental Signals: These signals are recommendations or trade ideas derived from fundamental analysis. Typically shared by experienced traders or analysts, they often involve insider information that is not widely available. The trader acts on this exclusive information to make informed trades.
• Technical Signals: These are generated through technical indicators, such as Expert Advisors or oscillators, and are based on historical price data. Technical signals are more accessible to the average trader and are commonly available for free on various trading platforms. However, professional-grade technical signals may require a subscription or payment.

Access to fundamental signals is limited to a select few, whereas technical signals are widely available and easier to interpret. Numerous websites offer trading signals for purchase, but there is a growing trend towards free signals from private analytical agencies or forex brokers like LiteFinance.

The Purpose and Use of Trading Signals

Trading signals are invaluable for forecasting price movements and guiding trading decisions. The need to predict price direction has led to the creation of various mathematical indicators and oscillators. Although there are numerous oscillators available, interpreting their signals can be challenging for traders.

Modern trading signals simplify this process by integrating the outputs of several key indicators. They provide not only the trade direction and potential price movement but also the signal’s relevance and applicable time frame, offering a comprehensive trading tool.

This means that modern traders can anticipate price movements without manually analyzing multiple oscillators. Advanced software consolidates these signals, presenting a final recommendation that the trader can choose to follow or not.

Companies like LiteFinance are at the forefront of making trading signal services more user-friendly and accessible.

Utilizing Forex Trading Signals with LiteFinance

LiteFinance integrates trading signals directly into the trader’s profile for ease of use. Here’s a step-by-step guide on how to leverage these signals effectively:

1. Access the Analytics Tab
In your trading account profile, select the «ANALYTICS» tab from the left vertical menu. This will lead you to the analytical portal, where you can find trading signals, analyst opinions, and forecast articles.
2. Navigate to the Signals Section
Click the «Signals» tab at the top of the page to view the available trading signals.
3. Customize Your Preferences
By default, the Favorites tab opens. You can adjust this to suit your needs. To view real-time trading signals for currency pairs, switch to the «Currencies» tab.
4. Define Your Time Frame
Choose the appropriate time frame for viewing trading signals based on your trading strategy. For instance, opt for a short-term trade if that aligns with your approach.
5. Analyze Signal Recommendations
The «Recommendation» section provides signals categorized into four types: buy, active buy, sell, and active sell. Active signals (e.g., active sell) are generally more reliable. If you’re inexperienced with indicators, this section simplifies your decision-making process.
6. Review Indicator Signals
Signals are presented from the 10 most relevant indicators for your selected instrument. The first four indicators, which are moving averages (MAs), are basic trend-following tools and may not always be reliable. Focus instead on oscillators like stochastic, Bill Williams’ oscillator, and zigzag, which are highly regarded for their accuracy. The strength of the signals is denoted by triangles (one to three), with three triangles indicating a strong signal.
7. Select and Trade a Currency Pair
Choose the currency pair (e.g., AUD/CHF) showing a signal and click on its ticker to proceed.
8. Enter the Trade
In the Trade section for the selected pair, choose the «Now» type for immediate execution. Select «Sell» if the signal is to sell, and determine the trade volume based on your confidence in the signal.
9. Execute the Trade
Click the «Sell» button to enter the trade. Initially, the «Current Change» section will show a negative value due to the commission fee.
10. Monitor and Exit the Trade
After some time (e.g., 25 minutes), assess whether the price movement aligns with the signal, resulting in a profit. If the profit meets your expectations, exit the trade to secure your earnings.

Maximizing Trading Signals

The Trading Signals section offers signals for all instruments listed by the broker, enabling you to diversify your trades. Although not all signals will be profitable, the cumulative effect of successful signals typically outweighs any losses.

Conclusion

Trading signals enhance your trading strategy by providing actionable insights into market movements. By using LiteFinance’s integrated trading signals, you can effectively navigate the forex market and potentially increase your profits. Embrace these tools to streamline your trading process and achieve better results. For any questions or further assistance, feel free to consult LiteFinance support or their comprehensive FAQ section.