Published September 14, 2026 · All articles
When you click Generate Signal on SignalsTrades, the server fetches live market data and runs 13 independent checks. Each check looks at a different aspect of the market and votes BUY, SELL, or abstains (NEUTRAL). The direction with the most votes becomes the signal. The percentage of rules that agreed becomes the confidence score.
Uses 14 daily closes. If RSI is below 30, the pair is oversold and likely to bounce (BUY). If RSI is above 70, it is overbought and may fall (SELL). Between 30 and 70: NEUTRAL.
A market-wide sentiment score from 0 (extreme fear) to 100 (extreme greed). SignalsTrades uses it as a contrarian signal. Extreme fear (below 25) suggests panic selling has gone too far: BUY. Extreme greed (above 75) suggests euphoria has stretched prices: SELL.
Compares the average closing price over the last 5 days to the average over the last 20 days. If the 5-day average is higher, price is in short-term upward momentum: BUY. If lower, it is in downward momentum: SELL.
Calculates SMA20, SMA50, and SMA200 from daily closes. When price is above SMA20 and SMA20 is above SMA50 (all stacked upward, golden cross): BUY. When price is below SMA20 and SMA20 is below SMA50 (death cross): SELL.
The first 90 minutes of major trading sessions (London at 08:00 GMT, New York at 13:00 GMT) see the highest order volume. If a session just opened and price is trending in a direction, this rule adds a vote in that direction.
Prices near round numbers (1.1000, 1.0900, 150.00, 2400.00 for gold) often act as support or resistance because institutional traders cluster orders at round numbers. Within 15 pips below a round number: BUY (support). Within 15 pips above: SELL (resistance).
Checks multiple USD currency pairs simultaneously. If the US dollar is broadly strengthening, it adds a USD-bullish bias (SELL for EUR/USD, BUY for USD/JPY). If broadly weakening, the opposite applies.
Looks at 90 days of daily closes to find swing highs and lows. When price is within 0.15% of a key swing level, the rule shows "Touching support at X" or "Touching resistance at X" and votes accordingly.
Checks the last three closed signals for this specific pair. If two of the last three were winning trades in the same direction, that direction has momentum and the rule votes to continue it.
Fetches recent headlines for the currencies in the pair (e.g., EUR and USD for EUR/USD) and scores them positive or negative using AI. If the majority of headlines are positive for the base currency, the rule votes BUY.
Checks for scheduled high-impact economic events (CPI, NFP, FOMC decisions, GDP releases) within the next 4 hours. Events that historically move a currency in a specific direction add a vote in that direction.
Gold (XAU/USD) and the US dollar tend to move in opposite directions. If gold is rising, it signals dollar weakness, which is bullish for EUR/USD but bearish for USD/JPY. This rule adds a cross-market perspective that single-indicator systems miss.
Monitors the daily trading range over recent sessions. When the range has been narrowing (compression: lower highs, higher lows) and then expands sharply beyond a threshold, a breakout is detected. The rule votes in the direction of the expansion.
After all 13 rules run, the system counts how many voted BUY and how many voted SELL. The majority direction becomes the signal. Confidence starts at 55% and increases by approximately 5% for each additional rule that agrees with the final direction. Maximum confidence is 95%.
Any single indicator fails in certain market conditions. RSI stays overbought in a strong trend. Momentum fails during sideways markets. News sentiment can be wrong. By combining 13 independent views, the system reduces the impact of any single indicator being wrong. When 10 of 13 rules agree, the probability of being correct is higher than when 2 of 13 agree.