How to use a forex signal, step by step

A forex signal from SignalsTrades gives you three numbers and a direction. This page walks you through exactly what to do with them, step by step, in plain language.

Step 1: Pick your currency pair

On the SignalsTrades homepage, select the pair you want to trade. EUR/USD is the best starting point if you are new. It has the highest volume, tightest spreads, and the most reliable signal data. Once you have chosen your pair, click Generate Signal.

Step 2: Read the direction (BUY or SELL)

After the 13 rules reveal one by one, the verdict shows either BUY or SELL.

• BUY means the analysis expects the price to rise. You open a long position with your broker (sometimes called "buy" or "long").
• SELL means the analysis expects the price to fall. You open a short position (sometimes called "sell" or "short").

The confidence score shows how strongly the rules agreed. A confidence of 80% or above means most of the 13 rules pointed the same way.

Step 3: Note the entry price

The entry price is the market price at the moment the signal was generated. Open your trade near this price. If the price has moved more than 10-15 pips since the signal was created, wait for a fresh signal rather than chasing the market.

Step 4: Set your take profit (TP)

Take profit is your target price. When you open the trade in your broker platform, enter the TP as a limit order. When price reaches this level, your trade closes automatically and the profit goes to your account. Do not remove the TP once it is set.

Step 5: Set your stop loss (SL)

Stop loss is your protection. When you open the trade, enter the SL as a stop order. If price moves against you and reaches this level, the trade closes automatically with a capped, manageable loss. Always set the SL before you confirm the trade. Never skip this step.

Step 6: Size your position small

Risk management is the most important skill in trading. Before confirming the trade, calculate how much money you are risking:

• Measure the distance in pips from entry to SL
• Multiply by the pip value for your lot size
• Never risk more than 1-2% of your account on a single trade

If you are new, use a demo account (fake money, real prices) until you are comfortable with the process.

Step 7: Place the trade with your broker

Log into your broker platform. Open a new market or limit order for the pair you chose. Set the direction (buy or sell), enter the TP and SL exactly as shown in the signal, then confirm the order. Your trade is now live.

After the trade is open

Let the trade run. TP or SL will close it automatically. Do not move the SL to a worse position to avoid a loss. If important news breaks that changes the fundamental picture, you can close manually. Otherwise, the system manages the exit for you.

Track whether the signal was a win or loss. Signals close on Telegram at @SignalsTradesSignals. Over time, reviewing your results tells you which pairs and confidence levels work best for your trading style.

Frequently asked questions