The confidence score on a forex signal is a percentage that represents how strongly multiple independent indicators agree on the direction. A confidence of 85% means many rules fired in the same direction. A confidence of 60% means only a few rules aligned.
Base confidence starts at 55%. Each rule that fires in the signal direction adds 5% to confidence, up to a maximum of 95%. A signal with 8 rules aligned reaches 95% (55% + 8 × 5%). A signal with 1 rule aligned shows 60%.
| Rules fired | Confidence | Interpretation |
|---|---|---|
| 1 | 60% | Weak alignment, consider waiting |
| 3 | 70% | Moderate, usable with tight SL |
| 5 | 80% | Strong, most rules agree |
| 8+ | 95% | Maximum, rare, high-quality setup |
Confidence is not a win probability. A 95% confidence signal does not win 95% of the time. It means 95% of the rules agree on direction, which statistically increases the probability compared to a 60% confidence signal, but markets can still move against the direction.