Market Signal

A market signal is information that tells market participants something they could not otherwise observe directly. The term has two common uses. In trading, a signal is a cue to buy or sell, generated by price patterns, technical indicators such as golden crosses, changes in volume, news or on-chain data; signal services sell such alerts, and many crypto "signal groups" have been linked to pump-and-dump schemes. In economics, signalling describes how one party reveals hidden information to another where there is asymmetric information: a company paying dividends may signal confidence in its earnings, and a central bank's guidance signals its likely policy. Prices themselves are often called the most important market signal, because they carry information about supply and demand to everyone. A signal is evidence, not certainty, and false or noisy signals are common.