There are plenty of factors that need your consideration before picking the right forex signal provider for you…
What is Your Trading Style?
If you're a seasoned trader, you have to select a signal provider that complements your trading style. The subsequent section will focus on some of the basic trading styles and patterns so that you can identify your sphere of working.
- Conservative Style
As its name implies, conservative approach means you're hesitant in taking huge risks. This style was quite popular from the past few decades. Such traders require evidence and affirmation on each trade. Generally, conservative traders wait for the breakout to happen and then look ahead to pullback.
- Aggressive Style
An aggressive trader, on the other hand, places trade before trade setup actually develops. Noticeably, there is a difference between high-risk trading and aggressive-approach as traders with aggressive style generally finish up taking trend reversals quicker than the other traders.
Price Action Signals
Price-action technique is also known as clean-chart trading. It is basically an analyzing approach which comprises of the examination of price changes over the certain time period. This technique is employed by forex brokers to forecast on the future price direction of a financial market.
The general misconception is that the price action occurs only in markets with high volatility, but the fact is anything traded in the market triggers price action. In simpler words, it's a type of technical analysis that is linked with the first-hand information a financial market produces for itself.
Seasoned price-action traders usually make use of their unique market understanding and predicting capability to see possible price direction. Ideally, they focus on past statistics of the last 5-6 months. Such traders can utilize price-action to explain the cognitive process behind market fluctuations. Each participant provides clues on a price chart that could be further used and interpreted by other traders to predict and strategize.
Price-action signals are one of the most important factors as it provides a broker with strong hints about price changes. The three basic price-action setups include inside bar pattern, pin bar pattern and the fakey pattern. Such signals are demonstrated in the shape of candles and they interplay within a process. Price action traders make use of only past price levels to ascertain their opening or closing levels. In addition to that, they also analyze trend lines and other measures that are PA-related.
