Even if you are an experienced trader, it’s not possible to constantly monitor the rate at which a currency pair is trading.
A forex trading signal is a notification service alerting a trader to take advantage of an opportunity to either enter into or exit from a trade on a currency pair. For example, you might need to exit a trade quickly or open a new position to hedge your current one. You may also want to take some profit on an existing position, depending on the data that is provided. Forex signals are not offered by Plus500.
Plus500 sends market event notifications. These are free-of-charge and are available across multiple asset classes; rather than making a suggestion to a trader about when to execute or exit a trade, Plus500 alerts are merely price alerts reflecting current market events.
When trading currency pairs, you’ll want to take into account the exchange rates of the currencies you are trading. You may also want your orders to be executed when a currency pair reaches a certain rate.
On the Plus500 platform, you can set automatic Buy and Sell orders to open a trade when the price of an instrument hits a certain level. Of course, it is also possible to open a new position manually when this occurs. To sign up for alerts and notifications via Push, In-App and Email, simply go to ‘Account’ > ‘Notifications Settings’. Plus500’s market event notifications shouldn’t be relied upon in order to make trading decisions. This is general information which doesn't take into account your personal circumstances.
There are a large number of technical indicators that might signal a Buy or Sell position on any particular currency pair. Four of the most relevant indicators include the Simple Moving Average (SMA), the Exponential Moving Average (EMA), the Relative Strength Index (RSI), and the Moving Average Convergence/Divergence (MACD).
Here are their definitions:
Depending on your individual trading strategy and what you are monitoring, you might want to be notified of changes in any one of these technical indicators. You can also design your trading strategy based on how the indicators are behaving.
You may want to know when it is time to exit a trade and lock in your gains in a profitable position. To do this, you can use some of the technical indicators outlined above. For instance, you may want to consider taking a profit if the 3-day RSI rises above 90. Alternatively, you might want to take a profit if the RSI is below 10 (should you be shorting the currency pair). Bollinger Bands are another technical indicator that you can use to analyse whether or not to take profit, along with a host of other indicators.
An economic calendar is a good way to stay on top of economic events from around the world at any given time. Economic data is highly useful for fundamental traders who typically focus on long-term positions.
Relevant economic data may include employment reports, inflation rates and movements in interest rates. Political statements are also very important for fundamental FX traders. You can also get notified about Plus500 traders’ sentiments (Buyers vs Sellers). This can be an important indicator and consideration for most FX traders.
Plus500 does not provide forex trading signals but instead offers a wide range of indicators which allow you to develop your trading strategy and receive real-time market event notifications on prices, percentage change (daily or hourly) and traders’ sentiments.
The aforementioned are some of the more reliable indicators that you can make use of when trading forex CFDs with Plus500.
On the Plus500 platform, you may set alerts based on what you are tracking. This means that you only receive the notifications you need. Sign up/Log in here to start using trading alerts.
This article contains general information which doesn't take into account your personal circumstances.