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