Trading Signals: Your Compass in the Crypto Market

Every trader has been there: you see others making money by following “signals” and you wonder if it's the magic formula. Spoiler alert: it's not. But understanding what they are and how to use them well can indeed change your game.

What is a trading signal?

Basically, it's a recommendation on when to enter or exit a position. It can come from an algorithm, an experienced analyst, or from patterns in the chart. The point is that it saves you the deep analysis… if it's good.

Three types you should know

1. Automatic vs Manual

• Automatic: Bots and algorithms analyze data 24/7. Example: The RSI indicates oversold → bot says “Buy”.
• Manuals: Professional analysts share their forecasts. Example: “BTC will go to $110k, buy at $98k”.

2. Where they come from

• Techniques: Patterns, supports, resistances on the chart.
• Fundamentals: News, protocol events, BTC hash rate (basically, the network's computing power).
• Combined: The best of both worlds. When news + resistance break coincide = strong signal.

3. According to your style

• Spot trading (real assets)
• Futures ( with leverage )
• Long-term investment
• Scalping/day trading

How not to fall into the trap

The reality: many lose money blindly following signals. To avoid it:

✓ Verify the source: Where does it come from? Is it reliable?

✓ Request arguments: A signal without analysis is just gossip.

✓ Check the validity: The signals have an expiration date. If a week has passed, it has probably already expired.

✓ Look for stop-loss and take-profit: If they are not clear, it's bait.

Real example

BTC Signal for Futures:

• Entry: $99,000
• Target: $102,000
• Stop-loss: $98,500

Technical signal ETH:

• The price broke resistance at $3,700
• Objective: $3,900

The Good and the Bad

Advantages:

• You save time
• You learn from experienced traders
• Improve your chances of profits

Disadvantages:

• Not all work ( or even closely )
• Novices can follow them without understanding anything → guaranteed losses
• No guarantee of profits

The inconvenient truth

Signals are a tool, not a money-making machine. Those who truly win combine: reliable signals + their own analysis + risk management + experience.

There is no shortcut. Trading is a journey, not a destination.