A Forex signal can be defined as a suggestion that entails entering a trade on a currency pair. This kind of trade is usually done at a specific price and time. Forex signals can be generated in two ways:
- Manual forex signal system: this is generated by a human analyst sitting behind his or her computer. It involves the analyst looking for the signals and interpreting them.
- Automated forex signal system: this one is generated by Forex robots that look for the signals using a specific software and interpreting them. This is the best way because it is faster and removes the psychological stress involved in interpreting the signals.
Forex Signals are usually communicated through email, SMS, website, RSS or any other method that ensures immediate feedback. This is due to the timely nature of these signals.