Automated Trading Signals - How to Generate Trading Signals for Forex Trading
As a trader one of the lessons you must learn when it comes to trading the forex market is how to generate forex trade signals. A forex signal is just a set of rules that show when to buy or when to sell a forex currency pair.
If you want to come up with an automated forex system for generating automated trading 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 EA Forex Robots and automated forex signals used by traders can be found on the MQL5 Signals and MQL5 EA lessons on this website.
For example the simplest trading system is the moving average crossover system which generates forex signals once two moving averages cross over each other.
- Buy signal - moving averages crossover pointing upwards
- Sell signal - moving averages crossover pointing downwards
Automated Trading Signals - Specifying Forex Trading Signals
A trader can generate trade signals from the above forex trading system known as moving average crossover method system.
Forex Trade System
To confirm the signals generated a trader will need to come up with a forex 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.
· What is Forex Trading System
· How to Create a Forex Trading Systems
· Writing Forex Trading System Rules
· Generating Forex Trading Signals
· Tips for Forex Trading System
· How to Write Forex Trading Journals.
Automated Trading Signals
From the above trade system a trader can generate automated trading signals using the trade rules below:
Buy trade signal
- Both Moving averages pointing upwards
- RSI above 50
- Both Stochastics moving upwards
Sell trade signal
- Both Moving averages pointing downwards
- RSI below 50
- Both Stochastics moving downwards
An exit signal is given when Moving averages give an opposite or RSI gives an opposite forex trade signal; A signal in the opposite direction.
