What exactly is a Forex Signal?

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What exactly is a Forex Signal?
I am beginning to learn about Forex Trading. I heard people talk about if there is a good signal you can make money from it. Or create their own signal stuff like that

What exactly is a signal they are talking about?


Best answer:

Answer by gjkandb2000
The best way I can describe it is that it’s a recommendation to buy or sell when you analyze your data in a certain way. There are forex signal services you can subscribe to that will tell you when they happen for your criteria. I know I did not word that as clear as I wanted to , but you can check out the site that has been a big help to me for understanding forex. I hope it helps.

What do you think? Answer below!


  1. Nick M (January 7th, 2014 at 11:27 am)


    As the other answer says a signal is some sort of indicator of change – that a price movement is likely one way or the other.

    Signals can also refer to tips or recommendations given by services or software that specialize in such things. ‘Buy euros now at 1.1901’. Those signals are delivered in any number of ways, by email, SMS text message to a cell phone, IM message and so on. Some are no more than flashing text and/or icons on trading software. The software contains in-built algorithms that use the methods of technical analysis, combines it with current market data and generates a signal.

    An example of a technical signal, for example – the MACD (Moving Average Convergence/Divergence). Without going into details here, it uses the moving average – the change in an average price over time. A signal can be generated when the value of MACD crosses above (or below) a certain threshold. Buy when it moves above the line, sell when it falls below.

    There are many types of signal indicator and as with so many investment subjects signals – or technical analysis as the overall subject is generally called – has it’s devotees and knockers.

    My opinion is that in forex signals can be very useful once you’re clued up on them and what they mean, especially in a fast moving trade situation – which forex almost always is.

    As with any trading tool, it has to be used intelligently in order to avoid disasters. Entirely automating your buys and sells can amount to automatically losing money. Using a signal service can make your life easier, but never abandon your investments entirely to an automated service.

    I’ve recently started a blog on forex (link below) which includes some articles and links to further sources e.g, http://www.forex-master-trader.info/ which is a site offering a free forex basics course as well as a paid product.

    Hope this helps and good luck making money :-)

  2. wipe2001be (January 7th, 2014 at 12:07 pm)

    Simply put, a forex signal is generated by a set of technical indicators used in forex trading (MACD, RSI, MA,..)which will give you a buy or sell recommendation.
    A simple forex signal could be: I want to buy a currency pair if the 5 exponential moving average crosses the 50 simple moving average from below. If this conditions is met, I’m going to buy that currency pair. That’s how most forex signals are generated. Hope this helps.

  3. mark mc donnell (January 7th, 2014 at 12:58 pm)

    You can get alerts sent to desktop, cell phones, blackberries, or email from alot of brokers. The types of alerts are for indicator intersections like moving average crosses, or price alarms. I use free price alarms on my desktop almost every day. It wakes me up at 3 am sometimes in the Euro sesssion but thats fine with me I can disable it if I want to sleep or wake up and potentially enter a trade.

    good trading
    mark mc donnell

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