What Is a Trading Signal?
Understand exactly what a trading signal is, what it contains, and how to execute one properly.
A trading signal is a recommendation to buy or sell a specific asset at a specific price, with defined risk parameters. Good signals remove guesswork by providing clear entry, exit, and risk levels.
What a Signal Contains
- Pair: The asset to trade (e.g., BTC/USDT, ETH/USDT)
- Direction: LONG (buy expecting price rise) or SHORT (sell expecting price drop)
- Entry: The price to enter at
- Stop Loss (SL): Exit price if the trade goes wrong — limits your loss
- Take Profit (TP): Target prices to close for profit
- Leverage: Recommended leverage for futures
- Position Size: % of portfolio to risk
How Nezsig Signals Are Generated
- Technical Analysis: Price action, support/resistance, chart patterns
- Volume Analysis: Unusual volume often precedes major moves
- Market Structure: Trend confirmation across multiple timeframes
- Momentum: RSI divergences, MACD crosses
- Sentiment: Funding rates, open interest, long/short ratios
Note
Nezsig targets a 65–75% win rate. No signal provider has 100% accuracy — anyone claiming that is lying. Good risk management means even a 55% win rate is highly profitable.
Executing a Signal
- 1Receive the signal via Nezsig
- 2Verify entry price is still valid (within 1–2% of current price)
- 3Calculate position size using your risk management rules
- 4Enter at or near the stated entry price
- 5Set stop loss and take profit IMMEDIATELY after entering
- 6Track the trade using Nezsig's profit card feature
Interactive Calculators
Position Size Calculator
Calculate risk-correct size for any trade
Risk Amount
$100.00
Position Size
$5000
Margin Needed
$1000.00
Formula: Risk Amount ÷ Stop Loss % = Position Size
Risk / Reward Calculator
Verify R:R before entering any trade
Risk / Reward Ratio
4.00:1
Excellent — take this trade
Risk
2.34% ($1500)
Reward
9.38% ($6000)
Min Win Rate Needed
20.0%
Verdict
VALID TRADE
Discussion3 comments
This is exactly what I needed. The 10-layer system makes sense — explains why the signal quality is so consistent.
The No-Trade Zone filters are genius. I've been burned by signals during news events so many times. Good to know there's a filter for that.
Session bonus makes a lot of sense. London/NY overlap is always the most liquid period. Low liquidity breakouts are notorious fakeouts.