Understanding Buy and Sell Signals
When to enter and exit the market
Signals of opportunity
OhMyTrends generates signals automatically when the price reaches the target zones identified by the algorithm.
Buy signal
A buy signal is generated when the price reaches the upper slope (top tilt) in an uptrend. This suggests that the price could continue to rise.
Example: EUR/USD is in an upward trend, the price reaches 1.0985 (target on the upper slope). Buy signal with stop loss at 1.0930.
Sales signal
A sell signal is generated when the price reaches the bottom tilt in a downtrend. This suggests that the price could continue to fall.
Example: BTC/USD is in a bearish trend, the price reaches $95,000 (target on the lower slope). Sell signal with stop loss at $97,000.
Risk management
Each signal includes a stop loss level to limit losses in the event of a trend reversal. The risk/reward ratio is usually 1:2 or better.
Conclusion
OhMyTrends signals are suggestions based on technical analysis. It's up to you whether you want to follow these signals based on your strategy and risk tolerance.