Trading signals are hints or recommendations that help a trader understand when to buy or sell an asset. They can be based on technical analysis, fundamental data, or even come from experienced analysts. Using signals is a popular practice, especially among beginner traders who want to improve their results.

But I often see how people write.. I trusted.. and lost my funds!!!! Analyze!!!

What are trading signals?

A trading signal is a kind of "alarm signal" that indicates a potentially profitable entry or exit point in the market. These signals can come from various sources, for example: automated (from special algorithms); manual (from analysts and traders); from charts and indicators.

Signals allow for quick decision-making, even if you do not conduct a deep analysis yourself.

Types of signals in trading

1. By method of formation:

a) Automated signals

These signals are generated using programs and algorithms. For example, trading bots or special platforms analyze data and provide recommendations.

Example:

The RSI indicator shows that the asset is oversold. The bot recommends "Buy".

b) Manual signals

These signals are created by traders or analysts who share their observations and forecasts.

Example:

The analyst predicts that BTC will rise to $110,000 and recommends buying at $98,000.

2. By source of analysis:

a) Technical signals

Based on graphic analysis, indicators, patterns, and levels.

Examples:

The price broke the resistance level — a "Buy" signal.

A "Head and Shoulders" pattern has appeared — a "Sell" signal.

b) Fundamental signals

Based on news, events, reports, and other macroeconomic data.

Examples:

The company (team) released a positive report — a "Buy" signal.

An increase in BTC hash rate is a signal of price growth.

For those who don't know, Hash Rate refers to the computing power used to process and confirm transactions on the blockchain. It measures how many attempts (hashes) per second the equipment makes to solve a cryptographic problem.

The higher the hash rate:

the faster the network confirms transactions,

the harder it is for attackers to carry out an attack,

the higher the stability and security of the blockchain.

Typically, hash rate is used to assess the performance of mining equipment and the state of the cryptocurrency network (for example, my favorite BTC).

c) Combined signals

Combine technical and fundamental analysis for greater accuracy.

Example:

News about the decrease in interest rates coincided with the breakout of a key level — a strong "Buy" signal.

3. By type of trading:

Signals for spot trading:

Used for trading real assets.

Signals for futures:

Used in trading with leverage.

Signals for long-term investments:

Help investors choose promising assets for storage from several months to years.

Signals for intraday trading (scalping):

Contain precise recommendations with small targets and short time frames.

How to recognize a quality signal?

1. Reliability of the source.

Signals from trusted analysts or platforms evoke more confidence.

2. Accompanied by arguments.

A good signal is always backed by analysis: charts, indicator data, logic.

3. Relevance.

Signals have a validity period. If the recommendation is outdated, its use may lead to losses.

4. Risk management.

Quality signals always contain entry levels, profit-taking, and stop-losses.

Examples of signals in trading

BTC signal for futures:

- Entry level: $99,000.

- Target (take-profit): $102,000.

- Stop-loss: $98,500.

3. Technical signal:

The price broke the resistance level of $3,700 on ETH.

Recommendation: Buy with a target of $3,900.

Pros and cons of using signals

Advantages:

Time saving.

The opportunity to learn from more experienced traders.

Increasing the chances of profitable trades.

Cons:

Not all signals work.

Beginners may blindly follow signals without understanding their essence. !!!! This is what I wrote about at the beginning.

Risks when using signals without analysis.

Signals in trading are a useful tool that can improve your results. However, it is important to understand that no signal guarantees 100% profit. Before using signals, always conduct your own analysis, consider risks, and choose trusted sources. Trading is not just about signals, but also about developing your experience and knowledge.

#Signal🚥. #Signal. #Binance #BTC #ETH