Every signal on SignalsTrades checks 12 independent market rules simultaneously. Rules that vote in the same direction increase the confidence score. A signal is only issued when at least 4 rules agree. Here is how each rule works.
| # | Rule | What it checks | BUY fires when | SELL fires when |
|---|---|---|---|---|
| 1 | RSI | 14-period Relative Strength Index on daily closes | RSI < 30 (oversold) | RSI > 70 (overbought) |
| 2 | Fear & Greed | CNN Fear & Greed Index (0-100 market sentiment scale) | Index < 25 (extreme fear, contrarian buy) | Index > 75 (extreme greed, contrarian sell) |
| 3 | Price Momentum | 5-day average close vs 20-day average close | 5d avg > 20d avg (upward momentum) | 5d avg < 20d avg (downward momentum) |
| 4 | Session Open | Proximity to a major trading session open (London, New York, Tokyo, Sydney) | Within 60 minutes of session open, price trending up | Within 60 minutes of session open, price trending down |
| 5 | Round Level | Distance from the nearest major round number (psychological level) | Price within 15 pips below a round level (support) | Price within 15 pips above a round level (resistance) |
| 6 | USD Broad Trend | Direction of the US Dollar across 5 major pairs (EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CAD) | 4 or more pairs show USD weakening | 4 or more pairs show USD strengthening |
| 7 | Historical S/R | Swing highs and lows from 30 days of daily closes | Price bouncing off historical support level | Price rejecting historical resistance level |
| 8 | Win Streak | Direction of the last 3 closed signals for this pair | 2 of the last 3 signals were winning BUY signals | 2 of the last 3 signals were winning SELL signals |
| 9 | News Sentiment | Recent financial news headlines for this currency pair (last 24 hours) | Majority of headlines positive for base currency | Majority of headlines negative for base currency |
| 10 | Calendar Events | Scheduled high-impact economic events (NFP, FOMC, CPI, GDP) | Upcoming high-impact event historically positive for base currency | Upcoming high-impact event historically negative for base currency |
| 11 | Gold Correlation | XAU/USD price trend as a safe-haven indicator | Gold rising and pair positively correlated with gold | Gold falling and pair positively correlated with gold |
| 12 | Triangle Breakout | Price range compression over 14 sessions (converging highs and lows) | Range compressed and price breaks upward | Range compressed and price breaks downward |
The confidence score reflects what percentage of the 12 rules voted in the signal direction. A score of 58% means 7 of 12 rules agreed. A score of 83% means 10 of 12 agreed. SignalsTrades does not issue a signal unless a minimum threshold is reached. Higher confidence scores historically correlate with better outcomes, but no score guarantees a result.
Entry price is the live market price at the time the signal is generated. Take profit (TP) and stop loss (SL) are calculated using Average True Range (ATR) over 14 periods:
This produces a 1:1.5 risk-reward ratio on every signal. Over time, a strategy with a 1:1.5 ratio produces positive expectancy even at win rates below 50%.
Live prices are fetched from Yahoo Finance. RSI, momentum, and support/resistance calculations use daily close data. The Fear & Greed Index is sourced from the CNN Money API. News sentiment uses headline scraping from financial news aggregators.