Quick answer: A forex signal goes through six stages. An analyst studies the chart and finds a setup, checks it against a quality filter, writes the trade with an exact entry, stop-loss and take-profit, sends it to members (usually on Telegram), watches it while it’s open, and then records the result when it closes. Knowing these stages helps you judge any signal provider, not just ours.
Most articles explain what a signal is. This one shows how a signal gets made, from a blank chart to a closed trade on the results page. If you’re new to signals, start with What Are Forex Signals?. If you already have a signal and want to trade it, see How to Use Forex Signals. This article is about what happens before the signal reaches you.
Stage 1: Studying the Market
Every signal starts with someone looking at the market. At FX Broker Signals that’s a person, not an algorithm: our signals are written by our analysts, led by Md Tanvir Haider, CMT.
An analyst looks at several things at once:
Structure. Is the market trending, ranging or breaking out? Where are the important highs and lows? A buy in a clear uptrend needs less convincing than a buy against a downtrend.
Key levels. Support and resistance are price areas where buyers or sellers have stepped in before. Price coming back to a strong level is often where a trade idea starts.
How price behaves at the level. Candle patterns such as an engulfing candle or a pin bar show whether buyers or sellers are actually reacting there. A level on its own isn’t enough. The reaction is the trigger.
Trend tools. Moving averages and similar indicators help confirm the bigger direction. They add weight to a setup that the levels already suggest.
The news calendar. Big releases like US jobs data, inflation figures or central bank decisions can move price sharply in either direction. A clean chart setup an hour before one of these is a much riskier trade.
The session. Forex trades differently in the Asian, London and New York sessions. The same pattern can mean more during the busy London open than in a quiet overnight hour.
Stage 2: The Quality Filter
Most setups on a chart never become signals. Before a trade is sent, it has to pass a simple test:
- The structure is clear
- There’s a level that gives the trade a reason
- Price has shown a reaction at that level
- The target is meaningfully further away than the stop
If any of these is missing, the trade isn’t sent. That’s why we send 1–3 signals a day rather than 10 or 15. More signals would mean lower-quality signals.
Stage 3: Writing the Signal
Once a setup passes, the analyst turns it into a trade anyone can follow:
- Instrument: what to trade, which also decides how pips are counted
- Direction: buy or sell
- Entry: the price to open at
- Stop-loss: placed where the trade idea is proven wrong. If price gets there, the reason for the trade is gone. The stop isn’t chosen by how much loss “feels” acceptable
- Take-profit: the target, usually at the next important level
Every signal we send has one entry, one stop-loss and one take-profit, and the whole position closes at one level. That makes it simple to size, simple to place and simple to record.
The stop-loss matters most for you as a trader, because your lot size comes from it. Our lot size calculator turns the stop distance and your risk into a lot size.
Stage 4: Sending It to Members
We send signals on Telegram, because a Telegram notification reaches your phone in seconds. Speed matters: on a short-term setup, a signal seen half an hour late may already be 20–40 pips from its entry, and that changes the trade’s risk and reward.
What you do when the signal arrives is your part of the process. Our guide on how to use forex signals covers it step by step: read it, size it, place it with the exact SL and TP, and leave it alone. If you can’t watch your phone during the day, a copier can place trades for you; see copying Telegram signals to MT4.
Stage 5: While the Trade Is Open
With the SL and TP set, most trades simply run until one of them is hit. Occasionally conditions change sharply, for example after unexpected news, and a “close now” or similar update is sent. That’s the exception, not the routine.
When the trade closes, a follow-up message says what happened. Here’s a gold signal and its follow-up from 28 October 2026:
Stage 6: Recording the Result
The last stage is the one that lets you check everything else: the record. Our Signals Performance page lists past signals with the date, pair, direction, entry, SL, TP and outcome, losses included.
Whoever you follow, ask four questions about their record:
- Are losses shown? A record with no losing trades isn’t a real record
- Is it continuous? Or does it only show the good weeks?
- Are the targets realistic? Huge targets that are rarely hit look good on paper
- How far back does it go? Months across different market conditions say far more than one good month
Remember that every provider’s record, including ours, is self-reported, not audited by a regulator.
Why the Format Matters
Many signal services add complexity at Stage 3: several take-profits, partial closes, trailing stops, or loose entries like “buy around 1.1450”. Each one is something you have to manage, and something that can go wrong.
Our format keeps Stage 3 simple on purpose:
- One entry, one SL, one TP, on every signal
- The full position closes at one level, with no partial management
- A clear record, because each trade either hit its target or its stop
Frequently Asked Questions
How are forex signals generated? By an analyst or an algorithm finding a setup, checking it against set rules, and writing it up with an entry, stop-loss and take-profit. Ours are written by human analysts.
Are manual signals better than automated ones? Not always. Manual signals can react to news and context. Automated ones are faster and more consistent. The record and the risk rules matter more than the method.
Is a provider that sends more signals better? Not automatically. Good setups are limited, and more signals means more trades to manage. Judge a provider by its record over time, not by how many signals it sends.
How do I know a provider records its losses? Check its results page for losing trades, then compare a few entries there with what was actually sent in the channel.
Final Thoughts
A signal is only as good as the weakest stage behind it: the analysis, the filter, the way it’s written, how fast it arrives, and how honestly it’s recorded. When you know what each stage should look like, you can judge any provider for yourself.
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