Reading Forex Signals

Welcome back, traders and true believers of Forex Trading.

Welcome to the McDuck trading family.

In our last post, we covered some basic points on how you can start Forex trading using signals. Today we are going to elaborate on that, and go into details and terminology linked to Forex signals so that you can get a better understanding of how they work.

In our video Forex Trading with signals for beginners, we used a trading signal that we got from a website called Toolstrades.com, and it quickly turned out to be a winning signal!

Let's dive right into the further analysis of the information that you from a Forex trading signal!

I am going to explain these in a manner that will make the most sense, so the order might be different than the picture.

Starting from the top we have the self-explanatory "Asset" - this is our trade value of interest that we picked after careful research.

Strike date - This shows us the exact date and time that we received the signal, we can use this to calculate how much time has passed since we started the trade till the moment we closed it.

Exit time - This is the exact date and that time that we closed the trade. As you can see, it took roughly 21 minutes for us to make a profit on a short term signal!

Strike rate - This is the current value of our trade asset at the moment of receiving the signal.

Exit rate - This is the current value of our trade asset at the moment of closing the trade.

Type - This shows us the type of signal that we requested. It can be a Short term or a Long term signal:

-Short term signal - In general, the period of time between entering and closing the trade can range from a few days (or less as shown in our video) to a few weeks.

-Long term signal - When it comes to Long term trades, the period of time between entering and closing the trade can range from a few weeks, months or even years! I do not suggest this type of trading if you are a beginner.

Buy/Sell position - This tells us the position from which we are going to be entering the trade. This will depend on many factors, and judging by the current trend of the asset we intend to trade we can get the idea of what it is going be.

Buy position - By opening a 'buy' position, you 're effectively purchasing a market asset. Then you'll 'sell' it back to the market after you close your trade. Buyers-also known as bulls-believe that the value of an asset is likely to increase.

Sell position - By opening a 'sell' position, you are technically selling a borrowed asset in the expectation that the price will go down so that you can buy it back for a profit later on. In essence, sellers – or bears – assume the value of an asset is going to plummet.

Take profit - This is the point at which we expect to make a profit. Depending on the position that we entered the trade (buy/sell) this will vary. If we were to enter a trade on a buy position our 'Take profit' point would be above the entry price (as we are going to sell our trade asset at this point), and if we were to enter a trade on a sell position, the Take profit' point would be below the entry price (as we are going to buy at this point).

Stop loss - This is the counterpoint of the Take profit, and it basically tells at which point we should bail out of the trade so that we don't lose money. It will be on the opposite side of our Take profit point.

That is everything for today, I hope this makes reading Forex signals a lot easier for you, feel free to check out the video below on this topic, stay safe and I will see you soon with more tips and tricks, trading signals and guidelines for Forex trading!

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