We previously talked about Forex signals and what they are. We will discuss the different types of Forex signals. There are two signals that are created and these are selling or buying signals. However, there are other types of signals that you should know about besides these two. The signals listed will vary by trading platform. Volatility signals can also be sent. It basically examines the uncertainty relating to a currency pair. OB/OS is another signal that you may receive. This means that currency has been oversold or overbought. This happens when the indicating factor is at certain levels in the market.
ST/TP basically means that you need to put a stop loss or take the financial gain in a currency pair. A Partial Buy/Sell can be a bit confusing. On the one hand it means to purchase or sell currency but on the other hand it is also saying to hold your trade. A volume indicator can also be used to create flexibility. Conditions, crossing signals, oscillators and thresholds are also technical signals that can be sent depending on the service that you use.
Other things that can cause signals to be sent are the RSI, MACD and Stochastic. These are all indicators of trends and patterns of the market. These are some of the reasons that a signal can be triggered. Analysis of the market can result in any buy or sell signal being sent to the trader in question. There are many different scenarios that can be used when it comes to triggering a sell or buy signal on your trade. These are varied and some of them have been described above. Let’s get back to basics for a minute here with signals.
Basically put, there are two different signals for Forex. Those signals are selling or buying. If you receive a sell signal, this indicates that your currency pair should be sold. If the signal is for a buying trend, this indicates that you should purchase the currency pair that you are working with. One thing that should be made clear here is that you need to use discernment when it comes to automatic system signals. Jumping on the signals without having full information can be detrimental to your trade. So use discernment but also pay attention to the signals given so that you are able to sell or buy at the right time.