Forex trading signals are basically indicators or signs thatspur traders to action. The goal of this article is to enumerate and discuss some of the more common Forex trading signals that Forex traders use. But first, let us discuss the importance of these signals. Basically trading signals are used to time entry points and/or exit points which can lead to the maximum amount of profit or the minimization of loss.

1. Understanding Forex Trading
Signals 101
By James Taylor
http://www.FishingForexPips.com
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2. Forex trading signals are basically indicators or
signs that spur traders to action. The goal of
this article is to enumerate and discuss some of
the more common Forex trading signals that
Forex traders use.
Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.

3. But first, let us discuss the importance of these
signals. Basically trading signals are used to
time entry points and/or exit points which can
lead to the maximum amount of profit or the
minimization of loss.
Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.

4. 1) Forex trading software: This is a must have for
aspiring traders, especially those consumer’s who
do not have enough time to actually sort thru and
analyze the huge amount of economic data being
thrown into the market. A proper software will
provide newbie traders with a general concept of
Forex trading.
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5. However this software is only as good as the
information inputted into it which means a
trader must always know the basics of
fundamental and technical analysis. Think of a
Forex software as training wheels on a bike,
which help you start but must be removed in
time.
Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.

6. 2) EMA crossover: Traders often chart EMA’s
and look for crossovers of lines. Why? Because
this can indicate a trend reversal, which when
timed properly can mean a skilled enough
trader can ride the new trend by entering or
exiting at the beginning to the end which can
last a week or a month at most.
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7. For example, if a trader is dealing in 5 EMA
and 10 EMA when he or she notices a
crossover of these lines he or she will view
this as a signal for trend reversal and buy or
sell.
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8. 3) Parabolic SAR: This is a bit technical so beginners
should either brace themselves or have their notes
ready. Plot values in a selected time frame
(0.2,0.2), ADX 50 (+DI, -DI lines) an expert can
recommend entry when +DI line is on top of –DI
and exit when –DI line is above +DI. Just be careful
since a lot of times Parabolic SAR retraces.
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9. There are more Forex trading signals used by
traders to time their entry and exit however a
very important tip to remember is that these
signals are not absolute. In some cases the
occurrence of one signal maybe a coincidence
or what is called as a “false signal.”
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10. In order to minimize jumping the gun and
moving on a false signal a trader should
always check a single divergence or variation
with other signals. This is to increase the
likelihood of profit and decrease the likelihood
of incurring a loss.
Copyright by James Taylor - http://www.fishingforexpips.com/ All rights reserved.

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