Trade Signals - How to generate Signals for Trading

As a forex trader one of the tutorials that you must learn in trading the market is how to generate trade signals. A signal is just a set of rules which illustrate when to buy or when to sell a forex currency pair.

For example, the simplest system is moving average cross over system which generates signals once 2 MAs cross over each other.

Buy signal - MAs crossover pointing upwards
Sell signal - Moving Averages crossover pointing downwards

Forex Trading System

To confirm the signals generated one will need to create a system and a set of trading rules for thistrade system.

A system is a combination of two or more trading indicators & a set of written trade rules which are used to generate these trade signals with.

· What's Strategy

· How to Create a Systems

· Writing Strategy Rules

· Generating Signals

· Tips for Strategy

· How to Write FX Trading Journals.

From the above trade system a forex trader can generate trading signals using the trade rules below

Buy trade signal

Both Moving averages pointing upwards
RSI above 50
Both Stochastics heading upwards

Sell trading signal

Both Moving averages pointing downwards
RSI below 50
Both Stochastics moving downwards

An exit trade signal is generated when the MAs generate an opposite or RSI Indicator gives an opposite trade signal: A signal that is in opposite market direction.

More Courses and Tutorials:

Trade Forex Trading

Trade Signals - How to generate Signals for Trading

Forex Trading System