Trading signals are defined as recommendations either to sell or to buy. Who or what gives the trader these recommendations? And are they worth paying attention to? Yes, they are. Without a doubt.

Trading signals are little more than the result of prior market analyses and the pillar of future forecasts. Their proximity to actual market trends is a different issue.

One generally distinguishes between two different types of forex signals. First of all, there are signals based on fundamental analysis. It is extremely difficult to evaluate these signals, and without sufficient experience, one will again and again be confronted with unsatisfactory results. It is generally highly questionable whether it is at all possible to forecast a trend on the basis of one bit of news. A second kind of forex signal comes from the domain of chart and technical analysis. These signals are much more objective, as they are simply based on mathematical assumptions. However, these signals cannot provide any guarantees either. In order to get these signals, one uses different chart techniques and combines them, e.g. Bollinger bands. Bollinger bands are simply lines that “frame” the average at a certain distance. If the price trend touches the lines, this is interpreted as a signal.

An experienced forex trader will in any case use both kinds of signals in order to make as objective and profitable a decision as possible. Only these instruments combined with a good strategy and discipline will lead to success. This will confront a newbie with a whole range of challenges, e.g. gathering enough experience to be able to evaluate fundamental signals. On the other hand, signals derived from technical analysis cannot be applied on their own either. In this case, one can benefit from the experience of seasoned traders by obtaining forex signals from portals, an innovative service that can be of use around the clock.

In the meantime, there are a number of providers offering forex signals. And there are a number of ways to obtain the relevant information. Signals can be sent via email or text message to one's computer or cell phone in order to be up to date at all times. This is particularly important when trading foreign exchange – one needs to be able to make quick and profitable decisions. These signals are usually generated on the basis of scientific calculations. Here, currency trends from the past are factored in.