What is a Forex entry signal? EUR/JPY example

There are many ways to determine entry signals in forex. Some people use signals generated by indicators or moving average crosses. Other people rely soley on price action. The above is an example of a price action signal. The candle that is forming now is considered a reversal candle using the art of japanese candle stick reading. Rather I should say that if at the close of this bar it still looks like it does here then that would be a signal to consider short (sell) entries. This type of formed bar is called a bearish engulphing bar and may indicate a reversal of the up trend. Have a look back thru your charts and see how often the signal holds true. Read up on the art of japanese candle stick reading, I believe it will be worth your while.

This not a recommendation to trade this signal, however if you decide to play it after the candle has finished forming either do so on a demo account or if your trading live be sure to apply proper risk management.