> ## Documentation Index
> Fetch the complete documentation index at: https://docs.innova-trading.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Trading Signals

> Understanding signal format and best practices

## What is a Signal?

A **trading signal** is a visual indicator on a chart that shows:

* **Entry point** - Where to enter a trade
* **Stop Loss (SL)** - Where to exit if the trade goes wrong
* **Take Profit (TP)** - Target levels to exit with profit

## Signal Structure

Each signal consists of one or more **points**. A complete trading signal typically has:

```
┌─────────────────────────────────┐
│         TP3  ───○               │
│         TP2  ───○               │
│         TP1  ───○               │
│                                 │
│     ┌───┐                       │
│     │   │  ◄── Candlestick      │
│     └───┘                       │
│                                 │
│   ENTRY  ───▲                   │
│      SL  ───■                   │
└─────────────────────────────────┘
```

## Point Types

### `type: "high"` - Above the candle

Use for:

* Take Profits on BUY signals
* Entry/SL on SELL signals
* Resistance levels

### `type: "low"` - Below the candle

Use for:

* Entry on BUY signals
* Stop Loss on BUY signals
* Take Profits on SELL signals
* Support levels

## Complete BUY Signal Example

```json theme={null}
{
  "symbol": "EURUSD",
  "timeframe": 60,
  "indicator_name": "My Signals",
  "points": [
    {
      "time": 1765540800,
      "type": "low",
      "price": 1.1725,
      "label": "BUY",
      "color": "#3b82f6",
      "shape": "arrowUp",
      "size": 2
    },
    {
      "time": 1765540800,
      "type": "low",
      "price": 1.1695,
      "label": "SL",
      "color": "#ef4444",
      "shape": "square",
      "size": 1
    },
    {
      "time": 1765540800,
      "type": "high",
      "price": 1.1755,
      "label": "TP1",
      "color": "#22c55e",
      "shape": "circle",
      "size": 1
    },
    {
      "time": 1765540800,
      "type": "high",
      "price": 1.1785,
      "label": "TP2",
      "color": "#22c55e",
      "shape": "circle",
      "size": 1
    },
    {
      "time": 1765540800,
      "type": "high",
      "price": 1.1815,
      "label": "TP3",
      "color": "#22c55e",
      "shape": "circle",
      "size": 1
    }
  ]
}
```

## Complete SELL Signal Example

```json theme={null}
{
  "symbol": "EURUSD",
  "timeframe": 60,
  "indicator_name": "My Signals",
  "points": [
    {
      "time": 1765540800,
      "type": "high",
      "price": 1.1780,
      "label": "SELL",
      "color": "#f97316",
      "shape": "arrowDown",
      "size": 2
    },
    {
      "time": 1765540800,
      "type": "high",
      "price": 1.1810,
      "label": "SL",
      "color": "#ef4444",
      "shape": "square",
      "size": 1
    },
    {
      "time": 1765540800,
      "type": "low",
      "price": 1.1750,
      "label": "TP1",
      "color": "#22c55e",
      "shape": "circle",
      "size": 1
    },
    {
      "time": 1765540800,
      "type": "low",
      "price": 1.1720,
      "label": "TP2",
      "color": "#22c55e",
      "shape": "circle",
      "size": 1
    }
  ]
}
```

## Visual Reference

### Shapes

| Shape       | Icon | Best For           |
| ----------- | ---- | ------------------ |
| `arrowUp`   | ▲    | BUY entry          |
| `arrowDown` | ▼    | SELL entry         |
| `circle`    | ●    | Take Profit levels |
| `square`    | ■    | Stop Loss          |

### Colors

| Element     | Hex       | Preview                                          |
| ----------- | --------- | ------------------------------------------------ |
| BUY Entry   | `#3b82f6` | <span style={{color: '#3b82f6'}}>●</span> Blue   |
| SELL Entry  | `#f97316` | <span style={{color: '#f97316'}}>●</span> Orange |
| Stop Loss   | `#ef4444` | <span style={{color: '#ef4444'}}>●</span> Red    |
| Take Profit | `#22c55e` | <span style={{color: '#22c55e'}}>●</span> Green  |
| Neutral     | `#eab308` | <span style={{color: '#eab308'}}>●</span> Yellow |

### Sizes

| Size   | Value | Use Case                  |
| ------ | ----- | ------------------------- |
| Small  | `1`   | TP levels, secondary info |
| Medium | `2`   | Entry signals             |
| Large  | `3`   | High-priority alerts      |

## Metadata

Use the `metadata` field to include additional information:

```json theme={null}
{
  "metadata": {
    "signal_type": "BUY",
    "entry_price": 1.1725,
    "stop_loss": 1.1695,
    "take_profit_1": 1.1755,
    "take_profit_2": 1.1785,
    "take_profit_3": 1.1815,
    "risk_pips": 30,
    "reward_pips": 90,
    "risk_reward": "1:3",
    "strategy": "ICT Order Block",
    "confidence": "high",
    "notes": "Strong bullish structure"
  }
}
```

<Tip>
  Metadata is stored but not displayed on the chart.
  Use it for analytics and tracking signal performance.
</Tip>

## Best Practices

<CardGroup cols={2}>
  <Card title="Use the time field" icon="clock">
    Always use the `time` field from the /bars endpoint.
    This ensures signals appear on the correct candle.
  </Card>

  <Card title="Clear labels" icon="tag">
    Use short, clear labels like "BUY", "TP1", "SL".
    Avoid long text that clutters the chart.
  </Card>

  <Card title="Consistent colors" icon="palette">
    Stick to a consistent color scheme.
    Green for profit, red for loss, blue/orange for entries.
  </Card>

  <Card title="Size hierarchy" icon="arrow-up-1-9">
    Use larger sizes for important elements (entries)
    and smaller sizes for secondary elements (TPs).
  </Card>
</CardGroup>