What do the signals reflect?
The FX Signals generated by Olsen reflect the market's pulse and indicate trendiness of how far the price has moved in the direction of a trend. In other words, it indicates how oversold or overbought a currency is. A trader needs to know the pulse of the market to get his timing right: when to build up positions and to take profits, and generally manage his positions prudently. The FX Signals are closely linked to the FX Heatmap.
In addition you can define price triggers, which alert you whenever a certain currency pair crosses a predefined threshold.
In addition you can define price triggers, which alert you whenever a certain currency pair crosses a predefined threshold.
Are there different kinds of signals?
Yes, there are. We offer five different thresholds for the different profiles of traders.
The frequency number is an approximation as market activity varies heavily. The FX Signals differentiate between an up-trend (overbought) and a down-trend (oversold) by showing an arrow alongside the signal.
Additionally, you can define your own price levels. These signals alert you whenever the respective currency pair crosses the predefined level.
| Image | Signal | Threshold | Frequency |
 | T1 | 0.1% | 50/day |
 | T2 | 0.2% | 12/day |
 | T4 | 0.4% | 3/day |
 | T8 | 0.8% | 1/day |
 | T16 | 1.6% | 1/week |
Additionally, you can define your own price levels. These signals alert you whenever the respective currency pair crosses the predefined level.
How do I configure what signals I receive?
See the examples for how to set up signals.
What currencies are available?
At the moment, the following currency pairs are supported: AUD_CAD, AUD_JPY, AUD_NZD, AUD_USD, CAD_JPY, CHF_JPY, EUR_AUD, EUR_CAD, EUR_CHF, EUR_GBP, EUR-NZD, EUR_JPY, EUR_USD, GBP_AUD, GBP_CAD, GBP_CHF, GBP_JPY, GBP_USD, NZD_CAD, NZD_JPY, NZD_USD, USD_CAD, USD_CHF, USD_JPY, XAU_USD.
Do I have to trade every single signal I receive?
This depends on what you choose to receive. First make your choice regarding instrument and threshold (of course also multiple selections are possible), then you will receive all directional changes (0 signals) and overshoots (1,2,3,... signals). The higher the number, the more likely a rebound is going to happen. First, get a feeling of the signals, then use them to pace your trading.
Can I see the five thresholds used for the FX Signals in the FX Heatmap?
Yes, simply by checking the option 'Show FX Signal bars' green bars are added to the FX Heatmap.
What do you mean with "directional change" and "overshoot"?
In short, this is the terminology of our event based clock. Read more on the FX Heatmap FAQ.
How do I obtain these signals?
Sign up for a premium account and get any signals you configure to receive in real time. Without using the premium service, your alerts (email and website) will be delayed by 15 minutes.
How do I use the FX Signals for trading?
See how to set up signals that suit you or potential trading strategies.
What does the number/arrow on the left signify?
The number signifies the strength of the trend the market under observation is in. It is directly linked to the intensity of the color in the heatmap: the higher the number the more intense the color is. The arrow indicates the direction of the move: 0 and an up arrow for EURUSD means that the EURUSD has moved up by one threshold from the latest minimum (and hit a so-called directional change), 2 and an arrow down means that EURUSD has hit a directional change and has moved two thresholds in excess. The higher the number, the more likely is an occurence of a rebound.
What is the meaning of e.g. T4?
T4 or T followed by a number indicates that you are looking at a threshold (T) and at a certain frequency (4 mean 0.4%). See table at the top of the page for more details.
