What Is a Buy or Sell Signal?

A Buy or Sell Signal is a trading indication generated by a strategy or algorithm suggesting when to enter or exit a position.

Signals may be based on technical indicators, statistical models, price action, or other predefined parameters. Execution depends on market conditions and user-defined risk settings.

A Buy Signal is used to enter into a trade. A Sell Signal is used to exit a trade.

Example of a Trading Signal

A strategy generates a Buy Signal when price crosses above a moving average and executes the trade automatically through a connected exchange.

Frequently Asked Questions (FAQs)

Are signals guaranteed to be accurate?

No. Signals are probabilistic and subject to market risk.

Can signals be ignored?

Yes. Users can disable or pause automated execution.

Do all strategies use signals?

Most automated strategies rely on predefined signal logic.

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