A different sort of signal

New traders are dazzled by the range and apparently enormous power of chart entry signals. Hardly a day goes by without a Youtube “expert trader” posting a new clip on the power of engulfing candles: or a new trader posting on babypips on the power of pin bars.

Entry signals are useful but they’re not the be all, end all.

But there are other important uses for chart signals -
exit signals
stay-out signals
trend accelerators
“add” signals

I’m working up some suggestions for these headings, more to follow. meantime, anyone want to jump in with their own ideas?

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The bottom line is whether a signal increases the probability of being on the right side, and whether a trader is able to manage emotional control or not, which will determine whether the trade is a winner or loser.

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Does this mean add to the existing position?

Yes. Otherwise known as pyramiding. Its a key tactic to maximise gains from winning trades.