How to read forex signals
Forex pairs are scored on the 1h timeframe. Because major and cross pairs trade in tiny percentage ranges, momentum is measured relative to the pair's own history (z-score) - a flat percentage cutoff would leave most pairs stuck at NEUTRAL forever.
Direction, strength and the trend gate
Every forex signal is a direction (BUY / SELL / NEUTRAL) plus a strength (0-100). The direction tells you which way the pair is leaning right now; the strength tells you how hard the raw data agrees. Strength measures conviction - it is not a win rate.
The three engines
Signals are not repackaged from other indicators. They are computed from raw price closes on the 1h timeframe through three independent engines:
Momentum
Multi-horizon rate of change, standardized as a z-score against the pair's own recent history. A pair only fires when it is moving unusually hard for itself - not by a fixed percentage. That keeps low-volatility and high-volatility pairs on even footing.
Trend alignment
EMA slope plus where price sits relative to it. Momentum and trend must agree - a strong push against the prevailing trend is suppressed rather than chased.
Volatility regime
Pseudo-ATR ratio vs the pair's own recent baseline. Flags high(wider stops, more risk) and quiet (tight range) conditions so you know whether the setup is tradeable right now.
How to read a card
Take this example:
- momentum - human label for the z-score trend (accelerating / building / fading / drifting).
- trend - up / down / flat from EMA slope.
- volatility - regime + a warning when risk is elevated.
- atr - average true range as a % of price; your reference for stop distance.
- confluence - how many classic indicators (RSI / MACD / Bollinger) agree, as a fraction.
What makes forex different
Liquidity is thin in the small hours and spreads widen around news. A BUY with HIGH volatility right before a central-bank release is a different trade than the same BUY in a quiet session. Use the atr% value to judge whether the current pip range is worth the spread. Exotics (TRY, MXN, ZAR, KRW...) move more violently than the majors, so a high strength on an exotic pair does not mean "safer" - it means "more volatile".