Automated Signals - How to Generate Trading Signals For Forex Trading
As a trader one of the courses you must learn when it comes to trading the forex market is how to generate trade signals. A forex trading signal is just a set of rules that explain when to buy or when to sell a forex currency pair.
If you want to create an automated forex system for generating automated signals you can use the rules below to determine how to specify when the trading signals are generated.
Other examples of automated forex system trading Expert Advisor Forex Robots & automated forex signals used by traders can be found on the MQL5 Trading Signals and MQL5 EA courses on this website.
For example the simplest trading system is the moving average crossover system which generates forex signals once 2 moving averages cross over each other.
- Buy signal - moving averages cross over pointing upwards
- Sell forex signal - moving averages crossover pointing downwards
Automated Forex Signals - Specifying Forex Signals
A trader can generate signals from the above system known as moving average cross over technique system.
Forex Trading Trade System
To confirm the signals generated a trader will need to create a trading system and a set of trading rules for this trading system.
A forex system is a combination of two or more indicators and a set of written trading rules that are used to generate these signals with.
· How to Create a Trading Systems
· Writing Trading System Rules
· How to Write Forex Journals.
Automated Trading Signals
From the above trade system a trader can generate automated signals using the trade rules below:
Buy trade signal
- Both Moving averages pointing upward
- RSI above 50
- Both Stochastics heading upward
Sell trade signal
- Both Moving averages pointing downward
- RSI below 50
- Both Stochastics heading downward
An exit trading signal is given when the Moving averages give an opposite or RSI gives an opposite forex signal: A signal in opposite direction.
