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What are trading signals?
A trading signal is a trading idea that is generated using technical indicators or fundamental analysis. Set your parameters and signals will be sent to you directly as they are generated by the systems.
Why use trading signals?
Trading signals are tools that provide valuable insights and information to traders, helping them make informed decisions in the financial markets. These signals are generated by analysing various factors, such as technical indicators, market trends, and news events. By using trading signals, traders can receive alerts or recommendations on potential entry and exit points, market trends, and other relevant market information. Trading signals can be beneficial as they save time on market analysis, offer objective information, and help traders stay updated on market conditions. However, it's important to note that trading signals should be used as a part of a comprehensive trading strategy and combined with personal analysis and risk management techniques.
Identify
Identify trade ideas in your chosen markets.
Entry and stop levels
Signals include entry, limits and stop levels.
How Trading Signals Work
Trading signals are an essential tool used by traders to make informed decisions in the financial markets. They are generated through the analysis of various market factors, including technical indicators, fundamental analysis, and news events. These signals provide traders with valuable insights, highlighting potential entry and exit points, market trends, and relevant market information.
Here's a closer look at how trading signals work:
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1. Data Collection and Analysis:
Trading signals are produced by sophisticated algorithms, expert analysts, or a combination of both. The process begins with the collection of market data, including historical price data, trading volumes, and other relevant information. Technical indicators, such as moving averages, RSI, MACD, Bollinger Bands, and Fibonacci retracements, are often applied to identify patterns or trends in the data.
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2. Signal Generation:
Once the data is collected and analysed, the trading signal generation process begins. Algorithms or analysts identify specific market conditions, patterns, or events that may indicate potential trading opportunities. For example, a moving average crossover, an RSI reading above 70, or the formation of a bullish engulfing candlestick pattern could trigger a buy signal.
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3. Alert and Delivery:
When a trading signal is generated, it is sent as an alert to traders. The delivery method may vary depending on the signal provider and the trader's preferences. Signals can be sent via email, SMS, mobile app notifications, or through your trading platforms. Real-time delivery is crucial as it allows traders to act quickly on potential opportunities in the fast-paced financial markets.
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4. Interpretation and Decision-making:
Upon receiving the trading signal, traders must interpret its implications and decide whether to act on it. They consider the signal's relevance to their trading strategy, risk tolerance, and overall market conditions. Some traders may use multiple signals from different sources or indicators to validate a potential trade before executing it.
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5. Signal Execution:
After careful evaluation, traders can choose to execute a trade based on the trading signal. They may enter a long or short position in the relevant financial instrument, such as stocks, forex pairs, commodities, or cryptocurrencies, depending on the signal's direction. Timely execution is crucial, as market conditions can change rapidly.
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6. Monitoring and Adjustment:
Once a trade is initiated, traders must closely monitor the market to assess its performance. They may use stop-loss orders and take-profit levels to manage their trades and protect their capital. If market conditions change or the signal loses its validity, traders may need to adjust their positions accordingly.
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7. Combining Signals with Strategy:
Trading signals are valuable tools, but they should not be used in isolation. Successful traders often combine signals with a well-defined trading strategy, risk management techniques, and their own analysis to make well-informed decisions.
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In conclusion, trading signals work by analysing market data and generating alerts based on specific market conditions or indicators. These signals provide valuable information to traders, aiding them in making informed decisions and staying updated on market trends. However, it is essential to remember that trading signals should be used as part of a comprehensive trading approach and combined with personal analysis and risk management to achieve consistent success in the financial markets.
10 important trading signals
There are many trading signals used by traders, and their importance can depend on the specific market and strategy being used. However, here are 10 commonly used trading signals and a brief explanation of what they mean:
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1. Moving Average:
Crossovers: A crossover occurs when a shorter-term moving average (such as the 50-day moving average) crosses above or below a longer-term moving average (such as the 200-day moving average). This can signal a change in trend.
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2. Relative Strength Index (RSI):
The RSI measures whether a stock is overbought or oversold. If the RSI is above 70, the stock is considered overbought and may be due for a pullback. If the RSI is below 30, the stock is considered oversold and may be due for a bounce.
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3. Bollinger Bands:
Bollinger Bands are a technical indicator that uses a moving average and standard deviations to show the volatility of a stock. When the stock price hits the upper band, it is considered overbought, and when it hits the lower band, it is considered oversold.
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4. Volume:
Trading volume can be a useful signal. When volume is high, it can indicate a significant move in the stock. Conversely, low volume can suggest a lack of interest in the stock and a potential lack of momentum.
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5. Candlestick Patterns:
Candlestick charts can be used to identify patterns that can signal a change in trend. For example, a long white candlestick (where the closing price is significantly higher than the opening price) can suggest bullishness.
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6. MACD:
The Moving Average Convergence Divergence (MACD) indicator uses moving averages to show changes in momentum. When the MACD line crosses above the signal line, it can signal a bullish trend, while a crossover below the signal line can signal a bearish trend.
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7. Fibonacci Retracements:
Fibonacci retracements are used to identify potential levels of support or resistance. The retracements are based on ratios derived from the Fibonacci sequence.
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8. Head and Shoulders Pattern:
A head and shoulders pattern is a chart pattern that can signal a reversal of an uptrend. It consists of a peak (the head) followed by two smaller peaks (the shoulders) and a neckline that connects the lows between the peaks.
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9. Bullish Engulfing Pattern:
The bullish engulfing pattern is a candlestick pattern that can signal a reversal of a downtrend. It occurs when a small red candle is followed by a large green candle that completely engulfs the previous candle.
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10.News and Events:
News and events can have a significant impact on a stock's price. Traders may pay attention to earnings reports, product launches, regulatory changes, and other news events that can impact a company's performance.
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It's important to note that no single signal should be used in isolation. Traders often use a combination of signals to confirm a trading decision.
What information is in the trading signal area of the platform ?
List of ideas
List of all live signals on indices, forex and commodities.
Analysis
Technical and fundamental analysis explaining the rational.
Price levels
Specific price levels for entry, limits and stops.
Signal providers
Signals are supplied by Autochartist and PIA-First.
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Autochartist use advanced pattern recognition technology, whilst PIA-First's analysts monitor the markets for you. This combination gives you both advanced software tools as well as professional hands on expertise.
Autochartist
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Autochartist is a market leader in the field of technical analysis
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Allows you to scan the market and analyse data
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Generates live trading ideas across indices forex and commodities
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Provides the information objectively from chart analysis
PIA First
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Trading strategy service provided by two market professionals with over 45 years’ combined experience
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Award winning analysis
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Clear and concise signals for beginner and advanced traders
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Real time and actionable trade ideas
Award-winning
Guardian Stockbrokers reviews
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​Positive: Professionalism, Quality, Responsiveness, Value
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I could not more highly recommend Guardian Stockbrokers, everyone has been brilliant. The attentiveness, training and technical detail provided, has enabled a fast track learning and an ability to manage the portfolio in a way that would far exceed my own capabilities. It is almost as though they own the positions themselves; via their due-diligence and proactive manner of continuous monitoring. Above and Beyond.
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​Positive: Professionalism, Responsiveness
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Professional and proactive I’m really happy that they were recommended to me.
I would recommend Guardian Stockbrokers.
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​I've known Guardian Stockbrokers since their inception.
When dealing with trading, you want to work with people that are professional, personable and trustworthy.
Guardian Stockbrokers are all of the above.
I'd recommend them any day!
Disclaimer:
The signal service does not constitute and should not be regarded as investment advice. Guardian Stockbrokers provides an execution only service. You act on the signals entirely at your own risk.