What are forex signals? Forex signals are paid services provided by some independent forex brokers and analysts. The companies that provide forex signals monitor and analyze the market for you, providing you with their data via desktop alerts, email or even SMS and pager alerts.
Forex signal services analyze several factors when preparing their data. They perform technical analysis of market conditions and use a range of indicators to identify trends and isolate profitable entry and exit points. They then send you the results via the location of your choice and you can choose to use the signal in your trading, or pass it on.
Most forex signal services provide signals for only a handful of the most popular currency pairs, such as EUR/USD, USD/JPY, GBP/USD, and USD/CHF. Occasionally, you can find specialized services that provide signals for other, less traded pairs. Forex signals can be expensive, up to $100 per month. The benefit of subscribing to such a service is that they analyze and resolve the data for you, which saves you time. It should be noted, however, that using a signal service is not a substitute for proper education in the forex markets. Signaling services give you data, and you still need to know what to do with it.
When shopping for a signal service, make sure it gives you historical data so you can see its history for yourself. Remember that like any trader, forex signal services also have losing trades. You should not expect a signal service to be a surefire ticket to instant forex fortune, rather you should look at it as another tool in your trading toolbox.