Forex trading signals use raw market to identify where the entry and exit points of a trade are located. These signals are used in both, fundamental and technical analysis.
Fundamental analysis economic news that have a direct impact on the exchange rate for a specific currency. The news for fundamental analysis can be obtained by various government reports or by using a Forex economic news feed that keeps up with the economic news worldwide.
Technical analysis, however, uses current and historical data to forecast predictable trends to assist a Forex trader on whether to enter a trade or not. Traders us different types of charts such as line charts, bar charts and candlesticks charts to determine whether to enter a trade. The signals generated by these charts can be summarized in two categories: leading indicator or lagging indicators.