The forex signals are generally explained by the forex signal service that you choose. The forex signals and their specific meanings may change between forex signal service providers. The simple ones, such as buy and sell, are the most common. There are other forex signals that are not as common, but are used by different providers. The forex signal providers always offer an explanation and FAQs regarding their specific terminology. Some forex signals come in simple buy/sell at price messages. Other forex signals come in pie charts or line graphs.
Other than the traditional buy/sell signals, you may receive any of the following forex signals:
OB/OS-- Means that a currency has been overbought or oversold when an indicator reaches a certain level.
Volatility—This is a statistical measurement that is usually found in a line graph. It measures the frequency and tendency of a particular currency pair to have high rises or deep falls within a relatively short period of time. This basically examines how uncertain a foreign currency exchange pair is.
Partial Buy/Sell—This is almost a hem-hawing forex signal. Basically, it is saying to buy/sell some of the currency, which minimizes risk in highly volatile currency pairs, but it is also saying to hold some of the currency because a highly volatile currency pair may swing the other direction at any time. This will likely be accompanied by a Volume indicator which creates more flexibility in closing.
SL/TP – This is stop-loss or take-profit. This is the point at which the prediction system initiates a suggestion to stop losing in a downward trending currency pair or to take the profits generated in an upward trending currency pair.
Please read the forex signal service's instructions and guidelines carefully as they may or may not use this exact terminology. This is only an example of common terms used by many, but not all, forex signal services.
|Jennifer Mathes, Ph.D.|