Definition – What does Trading Signal Generator mean?
Trading signal generators are a type of software that applies technical analysis techniques to price action charts and alerts currency traders to a possible trade. This type of trading software is one step removed from automated forex trading software because it doesn’t enter or exit the trade. Signal generators track charts like technical analysis software, but they also provide users with suggestions on entry, exit and stop loss points for the position.
ForexTerms explains Trading Signal Generator
Trading signal generators can be a useful tool for relieving the trader of the burden of performing technical analysis on multiple charts. This software will monitor the selected charts and alert the trader when something interesting is happening. The forex trader can set the signals, their sensitivity and the desired timeframe, and then focus on carrying out his strategy when the opportunity presents itself. To properly customize trading signal generators, a trader will need to know the basics of technical analysis and how signals are created.