signals manual

8/3/2019 Signals Manual

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Fxnet Trading Signals – User Manual

Contents

Overview ....................................................................................................................................................... 2

Access to Trading Signals .......................................................................................................................... 3

Trading Signals Tool ...................................................................................................................................... 4

Technical Analysis Report ......................................................................................................................... 4

Technical Strategy and Technical Chart .................................................................................................... 5

Technical Alerts Section ............................................................................................................................ 9

Japanese Candlesticks Section ................................................................................................................ 10

Japanese Candlestick Patterns ............................................................................................................ 11



Overview

The Trading Signals system provides real-time information regarding trading opportunities for Forex

traders allowing them to improve their portfolio’s performance. Technical analysis is its core attribute.

Trading Signals is based on Trading Central's award-winning methodology.

Trading Signals combines :

Technical Analysis offers a chartist approach to assess directional moves and price targets

Alerts offer mathematical indicators to confirm initial thoughts and fine tune timing. Trading

Signals' tool box includes traditional indicators and proprietary sophisticated mathematical

algorithms that scan the market and trigger alerts and signals

Japanese candlesticks to confirm trend reversal or acceleration

These attributes will allow you to:

Beat the market - Time your entry points to perfection by receiving instant alerts showing you

ideal entry points on Forex major pairs, commodities and indices.

Save Time – There is no need for you to analyze charts seeing as they have already done this

work for you.

Identify shifts in the trends as they occur – Use the algorithmic pattern recognition and follow

the technical trend reports.

The Trading Signals system is available in several languages, including English, French, Italian, Japanese,

Spanish and Arabic.



Access to Trading Signals

Access the trading signals system by clicking on the Trading Signals link in the Tools menu (bottom left-

hand corner of the image below). This link will redirect you to the main Trading Signals page.

You may also choose to click on the arrow icons next to the currency pairs to redirect you to the specific

currency pair's Trading Signals page.



Trading Signals Tool

The Trading Signals tool is made up of three report sections. The main report section is the Technical

Analysis. Below it there are the Technical Alerts and the Japanese Candlesticks reports.

Technical Analysis Report

The image shows the Technical Analysis report section (the most recently published reports in this

section will be at the top).

Please refer the following descriptions to the numbering in the image above:

The 'Symbol' column (1) identifies the symbol's name (note that the USD does not appear in this columnif it is part of the symbol).

The 'Time (GMT)' column (2) shows the date and time when the analysis was published (note that the

date format is: DD/MM/YY).

The 'Title' column (3) details the investment horizon and refers to the time period which is either:

Intraday, Short-Term (ST) or Mid-Term (MT).

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The technical analysis reports for each symbol consist of the following:

The '1 Week' column (4) shows Trading Central's opinion on a Short-Term view (1 to 2 weeks).

There are 5 possible trends: bull, limited upside, consolidation, limited downside, downside.

The '1 Month' column (5) shows Trading Central's opinion on a Mid-Term view (1 to 2 months).

There are 3 possible opinions: bullish, trading range, bearish.

The 'Change' columns (6) indicate the change of Trading Central's opinion since the previous

publication. It indicates the force of the switch and can be graded from -4 to +4 for the Short-

Term view, and from -2 to +2 for the Mid-Term view.

When clicking on the title of one of these reports we will be directed to the relevant symbol's Technical

Strategy & Chart report.

The next chapter will give us an understanding on the Technical Strategy & Chart report.

Technical Strategy and Technical Chart

Each report consists of the technical strategy and the technical chart. The technical strategy is a consist

summary of Trading Central's findings and opinions, which is further detailed and illustrated through the

technical chart.



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The Pivot Point (1) is the key level within every technical analysis report. If the price has broken through

this level and remains beyond it by the end of the current bar, the Preference scenario is invalidated,

making the alternative scenario the favorite scenario. Therefore, the pivot point can be used as a stop-

loss level.

The Preference Scenario (2) is Trading Central's favorite outcome. It is illustrated by the blue arrow in

the technical chart. Trading central usually provides a conservative target and an aggressive target.

The Alternative Scenario (3) is the favorite scenario once the Pivot Point has been activated and there

has been a psychological change in the market.

The Comment (4) is an important feature of the technical strategy because it outlines how confident

Trading Central is in its Preference Scenario and giving key additional information regarding it.

The Trend (5) is showing the opinion for the symbol on the two time horizons.

The Key Levels Comment (6) indicates the importance of each level. The stars correlate to how

significant these levels are (*=weak, **= medium, ***=strong), meaning the likelihood of them not

being broken.

Below the full technical analysis, you can access historical research (7) for the relevant symbol.



The following image will provide you with a closer look at the chart by numbering its annotations:



Technical Alerts Section

The Technical Alerts section contains all the bullish and bearish technical alerts signals that have been

generated based on the previous days' closing prices

The different kinds of alerts that appear in this section are:

MA20: latest price has crossed over/through the 20-day moving average (MA20).

MA50: latest price has crossed over/through the 50-day moving average (MA50).

MA20_MA50: the 20-day moving average is crossing over or through the 50-day moving

average.

MACD_SL: the MACD (12-26) is crossing over or through the 9-day moving average.

MACD_0: the MACD (12-26) is crossing its zero line.

BOLLINGER: lasted price has crossed though the upper (green arrow) or lower (red arrow)

Bollinger Band (20 periods, 2 standard deviations).

RSI70: Crossing over (green) or through (red) the 70 level on the RSI, detects overbought signals.

RSI30: Crossing over (green) or through (red) the 30 level on the RSI, detects the oversold

signals. VOLUME: when the volume is sharply higher (green).

Period: time scale of the analysis.



Japanese Candlesticks Section

This section scans all underlying candlestick patterns that have been generated based on the previous

days' closing prices. These patterns help you identify trend reversals and accelerations.


The 'Candlestick' column (1) shows the Japanese candlestick pattern that has been identified.

The 'Last' column (2) gives the market price of the symbol at the time the analysis was published.

The 'Opinion' column (3) shows the bullish, bearish or end of current trend signal that correlates to a

particular Japanese candlestick pattern.

If the market price of the symbol reaches the level in the 'Invalidation' column (4) then the signal is

invalidated.

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Japanese Candlestick Patterns

Trading Central scans all underlying candlestick patterns. These patterns help you identify trend

reversals and accelerations.

Candlestick design: The rectangle

represents the

difference between

opening and closing

price.

Doji: Opening price and

closing price are equal.

Suggest a

bullish/bearish

reversal.

Hammer: Suggest a bullish

reversal.

Hanging Man:

Suggest a bearish

reversal.

Inverted Hammer: Suggest a bullish

reversal.

Shooting star:

Suggest a bearish

reversal.

Morning Star:

Suggest a bullish

reversal.

Evening Star:

Suggest a bearish

reversal.

Bullish Engulfing:

Suggest a bullish

reversal.

Bearish Engulfing:

Suggest a bearish

reversal.



Dark Cloud Cover:

Suggest a bearish

reversal.

Piercing Line:

Suggest a bullish

reversal.

Bullish Harami:

Suggest a bullish

reversal.

Bearish Harami:

Suggest a bearish

reversal.

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