Forex trading signals are a vital tool for trading in the forex market and are used by most forex traders. On the other hand, Forex traders are always at high risk of losing money due to changing trading conditions. Despite its unpredictability, forex trading remains one of the most profitable markets in the world. The complex nature of this market requires technical guidance and professional assistance from a broker. LiteForex is one of the most popular forex brokers in the world and is a name most associated with the success of beginners in the trading community. This broker offers different ways to receive forex signals. Forex trading signals are something that no active trader can truly ignore.

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What is LiteForex?

LiteForex is an online broker that offers its services to clients from different parts of the world. 

As a company, LiteForex was established in 2005 as LiteForex Investments Limited. The company has more than a decade of experience in maintaining the quality of the business order of multi-domain financial services to its clients from all over the world. As of 2020, LiteForex has more than 500,000 clients who actively trade with this broker on a daily basis. The company is headquartered in the Marshall Islands and operates from there. LiteForex Group also has branch offices in Kenya, Tanzania, Myanmar, Nicaragua, Indonesia, India, Ghana, Iran, Vietnam, Nigeria and the Philippines. 

How to trade with LiteForex 

Like other forex brokers, LiteForex offers its services only through online communication. It starts with opening a new LiteForex account and making a minimum deposit to select the trading account type. To open a business account, users must fill the online registration form available on the company’s website. A KYC-based verification, similar to the Binance authentication process, is performed online, which activates the account. It takes about 2 to 5 days for the account to be verified and activated. 

What are forex trading signals?

Real-time Forex signals provide you with up-to-date information and allow you to see how other experienced brokers are trading. 

Regardless of your trading expertise, using Forex signals can significantly improve your trading performance. In addition, expert traders can use Forex signals to expand their scope of profitability and experience in the digital currency group. 

For novice traders, forex signals offer advantages as they allow them to profit while gaining knowledge about the world of currency trading.  

It is very important to know that a trading signal is only useful when used at the right time, especially in highly volatile markets like Forex. On the other hand, if a trader receives it too late, the signal can easily become useless. 

To ensure that traders receive trading signals at the right time, providers send signals through multiple communication channels such as SMS, email, push notifications. Another option is to download platform plugins that allow traders to receive their signals directly on their trading platform. Some traders use social trading communities to receive forex related signals.

Simply put, Forex trading signals represent essential market information. In many ways, the Forex signal represents an immediate update that traders can use in the trading decisions they execute.

Types of forex signals 

Although many signal services share some features, there is no universal signal service. Next, we cover four common forex signal services.

Manual vs Automated Forex Signals

This service is categorized based on how the signals are generated. A forex manual signal is created by a person who is usually an analyst or an experienced trader. This is because with manual signal trading, the trader has to make the final decision and the human intelligence factor plays the main role.

In contrast, automated trading signals are generated by a computer or software that monitors and analyzes price action based on coded algorithms. 

The main advantage of the automated signal trading route is that it removes emotion and increases the speed of execution of trades. However, it also has a downside because you rely heavily on a computer, system or person, and it removes the decision-making process.

 According to most people, the biggest advantage anyone can get in this market is in the form of trading forex signals.

Paid signals vs free forex signals 

As their name suggests, free forex signal providers provide signals without asking for payment, while paid forex signal providers provide signals but require money for that service. The latter usually ask for a one-time payment or a monthly subscription.

Forex Entry vs Exit Signals 

 There are signal services that only provide entry signals, which tell a trader when to enter the market, and there are other providers that only provide exit signals, which tell traders to close an open position. 

Most of the time this is related to long-term forex trading signals in financial products that are trending for long periods of time. When it comes to short-term trading signals, a trading idea usually involves entry and exit signals.

What are the advantages and disadvantages of relying on Forex trading signals?

In a fast-paced and ever-evolving market like Forex, traders are looking for the best information that will help them predict price movements before they happen. Forex trading signals are used for exactly this purpose – although results are never guaranteed and your individual trading strategy will affect the profit you can make from these signals.

Here’s a look at some of the top pros and cons of using these signals to guide your trading activities.

Advantages

Each trader can customize the approach to use the signals that work best for them. 

Each trader operates on their own preferred timeline for opening and closing positions and may have different levels of comfort with risk-reward calculations. Additionally, many traders end up choosing a particular trading strategy based on their past success and comfort level with certain signals. In this regard, Forex trading signals can support any trading strategy you decide to use.

You can track trading signals in different ways. 

From subscription-based services to automated alerts via email, text or other communication channels, traders can use signals to watch for trading opportunities even when they’re not actively following a specific forex chart.

Trading signals can provide insights and trading recommendations based on various chart data. 

From historical data to trading volume and price movement, forex traders can use signals to evaluate opportunities from several different perspectives. This can ultimately boost a trader’s confidence in their trading decisions.

Disadvantages 

While almost all serious forex traders rely on trading signals to guide their decision-making, there is considerable disagreement about which signals – and which groups of signals – provide the best returns. As a result, traders must develop an approach to using signals that works for them – with no guarantee that the strategy will pay off in the short or longer term.

False signals are a constant threat. 

Even when you use multiple signals to confirm trends and validate your approach, false signals are a constant risk for any indicator. This is why no serious trader would invest a significant amount of their trading funds in a single position.

Over-reliance on Forex signals can give traders a state of ‘analysis paralysis’. 

When trying to do thorough research and de-risk your trades, you can actually compromise your decision-making and critical thinking abilities by trying to consider too many variables.

Types of signal services 

While many signal services have similar credentials, they are by no means the same for everyone. Usually, a signal service will have one of the following four forms:

Free or unpaid signals, usually obtained through voluntary services. Paid or purchased signals from a provider that provides algorithmic or personalized analysis. Paid or purchased signals that are derived from aggregator signal systems or sources. Signals (bought or otherwise) that come from trading software located on a trader’s computer. 

 which is located in the trader’s computer. This type of signal is usually referred to as Expert Advisor or Forex Robot.

Four common types of signals 

There are a lot of different forex signals out there, so it’s certainly helpful to understand what each signal means. Here are four common types of signals that every active or prospective forex trader should commit to memory:

Action

This is a simple, call-style signal in most cases, often in the form of a direct “buy” or “sell” statement. Typically, the best forex trading signals are those that can provide a clear indication of a change in price movement – ​​which can serve as an opportunity to open or close a position.

Popular sources of “action” signals include:

• Moving Average 
• simple moving average (SMA)
• Bollinger bands
• Power index
• relative (RSI)
• Moving Average Convergence/Divergence (MACD)

stop loss

A stop loss signal represents an exit point designed to protect your capital. With the details of a predetermined price, when the signal is automatic, it will get you out of the trade before the loss starts to increase. While a stop loss is recommended whenever you open a position, you can also set trailing stops by changing prices, thus retaining some profit.

Common signals to refer to when setting a stop loss include:

• RSI
• rate of change
• Random oscillators

profit withdrawal

As opposed to a stop loss signal, a take profit signal can be triggered when the profit level reaches a set rate. Typically, a profit-taking signal is used to initiate automatic selling of a position when that currency pair reaches a certain level.

In many cases, the signals used to set a stop loss are also effective for placing a take profit order, although sometimes other signals are used to identify profitable opportunities. Signals you may want to use in this scenario include:

• RSI
• Random oscillators
• Bollinger bands
• Fibonacci recovery levels
• Moving averages

Current market price

Not all signals represent a direct call to action. Some of them are information notifications. The Focused Market Current Price (CMP) signal helps you compare the price of the currency pair at the time the signal was issued with the actual price at the time the order was placed. Traders should use CMP signals to track potential buying opportunities that may arise when the price of a targeted currency pair moves toward resistance lines, overbought conditions, or other criteria you may use to initiate an action. .

CMP signals are mostly used for the following indicators:

• RSI
• Fibonacci recovery levels
• Moving averages
• MACD
• Bollinger bands

Forex signal reading

Moving forward, before you start using forex signals and forex signal trading services, it’s good to understand a real signal to get a better understanding of what it means. While signals may take different textual and graphical forms, content from most providers should generally be exported to you in this manner. 

For example, you might see “Sell USD/CHF at CMP 0.9309 – SL 0.9334 – TP 0.9278”. Upon breaking this signal, you will notice that the call to action is on the ‘Sell’ signal and the target pair is ‘USD/CHF’. “CMP” is listed at 0.9309, with a dictated “stop-loss” of 0.9334 and a “take profit” level of 0.9278. 

As you can see, despite the abbreviated and numerous nature of each signal you receive, it’s actually not that complicated to understand what it means.

Before using Forex Signal services 

Forex trading signal service is easy to use. You simply sign up for your trading account before copying the information. This idea can often lead some to believe that reading, using and understanding Forex trading signals is a quick way to market. This is simply not the case. While reading a simple signal can give you a byte size instruction, it doesn’t negate any of the risks associated with the trade. 

Before you decide to use Forex Signal services, you should know the following:

Understand the difference between forex signal providers.

No two forex signal trading services are the same. You will find that their quality is very high. Success rates for signal services vary from the high 60% range to something much lower. Do not treat all forex trading signal services as the same. Instead, understand exactly what you’re signing up for before you commit.

Increase your risk tolerance.

Due to the level of volatility and leverage, forex trading carries risks. Therefore, you may lose a large amount of capital in an instant. Popular pairs, such as XAU/USD, can experience a lot of volatility. So before reading any forex signal you receive, you need to understand how comfortable you are with the level of risk involved.

Understand market conditions.

Emotionless advice is generally what forex signal provides. However, this is no excuse for not understanding the market in front of you. Before acting on a forex signal, learn about current market conditions, cryptocurrency prices and restrictions.

Result 

So the forex signal with the benefits it offers allows traders to earn profits while gaining knowledge about the world of digital currency trading.