Every signal on SignalsTrades checks 13 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 | Moving Average | SMA20, SMA50, SMA200 computed from daily closes | Price > SMA20 > SMA50 (golden cross uptrend) | Price < SMA20 < SMA50 (death cross downtrend) |
| 5 | 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 |
| 6 | 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) |
| 7 | 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 |
| 8 | Historical S/R | Swing highs and lows from 30 days of daily closes; "Touching support/resistance at X" when within 0.15% | Price at or near historical support level | Price at or near historical resistance level |
| 9 | 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 |
| 10 | 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 |
| 11 | 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 |
| 12 | 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 |
| 13 | 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 13 rules voted in the signal direction. A score of 58% means 7 of 13 rules agreed. A score of 83% means 10 of 13 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) use fixed, instrument-specific distances tuned to each market's typical volatility:
This produces a reward-to-risk ratio of about 1.6 to 1 on every signal. Over time, a strategy with a ratio above 1 to 1 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.