How to Read a Trading Signal: Entry, Stop-Loss and Take-Profit

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How to Read a Trading Signal: Entry, Stop-Loss and Take-Profit

How to read a trading signal: entry, stop loss and take profit example

By TrendTitanFX Analysis Team · Updated 2 November 2026

A trading signal tells you what to trade and where. Entry is the price to open the trade. Stop-loss is the price where the trade closes at a loss. Take-profit is the price where it closes at a gain. Every TrendTitanFX signal includes entry, stop-loss and take-profit.

The three parts

PartMeaningWhy you need it
EntryPrice to open the tradeTells you where to start
Stop-loss (SL)Price where the trade closes at a lossLimits what you can lose
Take-profit (TP)Price where the trade closes at a gainLocks in the target

A real example from our free Gold channel

This signal was posted in the free Gold channel on 28 October 2026. We show the format only. It says nothing about how the trade ended.

XAUUSD SELL LIMIT
Entry: 4069.00
SL: 4118.00
TP: 3945.00
Risk only 1% per trade

LineWhat it means
XAUUSDThe market: gold against the US dollar.
SELLYou expect the price to fall.
LIMITThe order waits. A sell limit opens only if the price rises to the entry.
Entry: 4069.00The price where the trade opens.
SL: 4118.00The trade closes at a loss if the price rises to here. This is $49 above the entry.
TP: 3945.00The trade closes at a gain if the price falls to here. This is $124 below the entry.
Risk only 1% per tradeA guide to size the trade so the stop-loss costs about 1% of your account.

The target ($124) is about 2.5 times the stop ($49). Because it is a sell, the stop-loss is above the entry and the take-profit is below.

Prefer trades placed automatically? See copy trading vs forex signals.

What 1% risk means in lots

On a $10,000 account, 1% is $100. The stop is $49, and one lot of gold is 100 oz, so $49 is $4,900 per lot. Lot size = $100 ÷ $4,900 = 0.0204, rounded down to 0.02 lot. At 0.02 lot, a $49 stop loses $98, which is 0.98% of the account. On a smaller account, the same stop needs a smaller lot than most brokers allow, so check the numbers first with the lot size calculator. To size a gold trade from any signal, follow our guide on how to calculate lot size for gold.

Buy vs sell

In a buy, the stop-loss is below the entry and the take-profit is above. In a sell, it is the other way round: stop-loss above, take-profit below. If the levels do not follow this rule, re-check the signal.

Limit orders and market orders

A market order opens at the current price. A limit order waits for a better price. A buy limit sits below the current price and a sell limit sits above it. If the price never reaches your limit, the trade never opens.

Moving to breakeven

Moving to breakeven means moving the stop-loss to your entry price after the trade has moved in your favour. If the price then turns back, the trade closes near zero instead of a loss. It cannot remove risk before that point, and a tight stop can close a trade early.

Size your trade

The signal does not tell you your lot size. Work it out from your own risk with the lot size calculator and the pip calculator. For gold, see XAUUSD pip value. You can see the format in our free Gold channel.

Trading forex and gold involves a high risk of loss. Past results do not guarantee future results.

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