Every forex trader can benefit from utilizing the best forex signals available in the market. If you are a relatively new trader, signals give you an easy way to enter the forex market as you begin developing your own strategies and insights. More advanced investors can still benefit from signals, which can point them toward great opportunities they might have missed on their own.
Of course, you first have to find reliable and accurate signals, which can be difficult. In fact, you could lose a significant amount of money by following bad signals!
(SmartTrader users can join our free trading room to learn more.)
The best forex signals tend to have these traits
Remember that the best forex signals often are created with a mix of human observation and computer modeling. The contributing factors that are used by the most successful signals tend to include the following:
- Solid market technical analysis
- Knowledge of past pricing of the asset (assets)
- Updated, real-world news about the asset and the countries or sectors that impact it
- Trend information on how the asset is trading, including the sentiment in the markets
- Support levels (or resistance levels) of the currency or asset
- Other indicators such as classic candlestick patterns or the moving average prices involved
Naturally, this also relies on the signal provider’s own institutional knowledge: How deeply does it know different currency pairs and their opportunities? How many decades of trading experience do they have, or is it just years of experience? How broad is their variety of trading strategies, in order to provide diversification among any market condition?
Once you’ve considered your sources and found one with a strong track record, the best way to discover good forex signals is to test them out.
You can try out the signals for yourself by creating a demo account with a specific provider and then implementing their signaled trades for a few weeks. If you consistently make money, then the signals are probably good. If you lose money, start looking for different signals!
