Forex signals form the basis of all forex trading. Virtually every trade executed on the forex market around the world is generated as a result of some sort of forex signal.
These days, the majority of those trades come about as the result of automated forex signals, where forex trading systems use various algorithms to determine where and when to buy and sell specific currency combinations.
Only a small proportion of these trades stem from individual investors using signals from their own trading systems.
The signals themselves are triggered by a whole range of different criteria. For a bank, the signal might be take into account a range of complex information, such as the firm’s overall exposure in a certain area, whereas for an individual trader, it may be as simple as the crossing of two moving averages on a price chart.
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