NPX Platform — Trading Signals, Part. 2

How to read and use the signals

This is the second part of our guide dedicated to the use of trading signals on the NPX Platform. Read the first part to learn about the available strategies and how to access them:

D. How to read the signals

Long, short, neutral

Long: an increase in price is expected. It’s a buy signal.

an increase in price is expected. It’s a buy signal. Short: a fall in price is expected. It’s a sell signal.

a fall in price is expected. It’s a sell signal. Neutral means that no trend could be determined regarding the underlying. If a long or a short position was already open, this can be considered a sell signal. If no position was open, wait before opening a new one.

For instance, if we look at the ETH/USD strategy and apply the above, we would:

Buy ETH when the signal is long;

Sell ETH for USD / USD stablecoin when the signal turns to neutral if we had a long or short position previously opened; wait to open a new position if there were not.

if we had a long or short position previously opened; wait to open a new position if there were not. Short sell ETH if the signal turns to short. Short selling means to borrow ETH and sell it right away for fiat, wait for it to fall, buy it back at a lower price, then return the assets to the brokerage you borrowed them from, and pocket the difference. You will have to use a broker allowing margin trading to be able to short sell an asset.

Be aware that a short sale is particularly risky. It should only be used by experienced traders, who are familiar with the risks. Learn more about it here and there.

We do not provide price targets with our signals or a time frame for the trade. It’s all market driven.