What Are Trading Signals?
Trading signals are data-driven alerts that identify potential buy or sell opportunities in a financial market. A good trading signal tells you not just what to do but why — the underlying data that makes a trade setup high-probability.
In traditional trading, signals were generated manually — a trader would look at RSI, MACD or moving averages and decide. Today, AI trading signals automate and significantly improve that process by analyzing far more variables simultaneously: option chain data, open interest shifts, volatility regimes, news sentiment, and price patterns — all in real time.
For Indian traders operating in NSE, BSE and MCX markets, the most reliable signals come from combining price data with derivatives activity. This is exactly what TradePulse's signal engine is built to do.
Types of Trading Signals on TradePulse
TradePulse generates several categories of trading signals, each sourced from a different layer of market data. Together, they give traders a complete picture of market direction and conviction before entering a trade.
Option Chain Signals
Generated from real-time OI changes, call and put writing activity, PCR shifts and strike concentration. These signals show where institutional money is positioning right now.
OI • PCR • Strike WritingMachine Learning Signals
LSTM neural networks and Prophet forecasting models trained on 291M+ Indian market data points produce directional predictions with confidence scores across multiple timeframes.
LSTM • Prophet • Multi-timeframeIntraday Trading Signals
Live alerts during market hours based on OI momentum, PCR divergence, volatility spikes and unusual strike activity — designed for NIFTY and BANKNIFTY option traders.
Real-time • 9:15–3:30 PMVolatility & IV Signals
Detects IV expansion and contraction, volatility cone breaches and premium divergence — critical for deciding whether to buy or sell options and which strategies to use.
IV • Volatility Cone • GreeksSentiment & News Signals
FinBERT NLP model processes financial news in real time to generate sentiment scores — bullish, bearish or neutral — for individual instruments and the broader market.
FinBERT • NLP • Real-timeRisk & Regime Signals
Market regime detection (trending, sideways, risk-on, risk-off) combined with Monte Carlo risk models tells you when NOT to trade — often the most valuable signal of all.
Regime • Monte Carlo • RiskAI Trading Signals vs Traditional Indicator Signals
Most retail traders rely on RSI, MACD, Bollinger Bands or moving averages to generate trade signals. These tools are not useless — but they have a fundamental limitation: they only look at past price data. They are lagging by design.
AI trading signals are different because they incorporate forward-looking data — especially derivatives market data which reflects where participants are actually betting money right now. Furthermore, machine learning models detect non-linear patterns across hundreds of variables that no indicator formula can capture.
| Feature | Traditional Signals | TradePulse AI Signals |
|---|---|---|
| Data Source | Price only | Price + OI + IV + Sentiment + ML |
| Lag | Lagging (reacts to past) | Near real-time (predictive) |
| Derivatives Awareness | None | Full option chain integration |
| Confidence Score | No | Yes — ML probability output |
| Market Regime Awareness | No | Yes — avoids false signals in sideways markets |
| News Sentiment | No | FinBERT NLP integrated |
| Risk Assessment | No | Monte Carlo + regime engine |
Trading Signals for NSE — NIFTY, BANKNIFTY & FINNIFTY
NSE index derivatives are the most actively traded instruments in India by volume. NIFTY and BANKNIFTY option chains generate enormous amounts of real-time data every second, making them ideal for AI-powered signal generation. TradePulse's NSE trading signals are based on several key data points that update live throughout the trading day:
- OI shift signals — detects when large call or put OI is being built or unwound
- PCR trend signals — tracks put-call ratio changes over 5, 15 and 60-minute windows
- Smart money bias — identifies institutional positioning direction
- Max pain signals — tracks deviation from max pain level as expiry approaches
- Gamma zone alerts — flags high-gamma strikes where accelerated moves are likely
- ML directional calls — LSTM model output with confidence percentage per timeframe
As a result, NIFTY and BANKNIFTY option traders using TradePulse have access to the same depth of signal infrastructure previously available only to institutional desks.
Trading Signals for MCX — Gold, Silver & Crude Oil
MCX commodity trading is an underserved area for signal platforms. Most tools focus exclusively on equities and ignore MCX entirely. TradePulse is one of the few platforms providing dedicated AI trading signals for MCX instruments including Gold, Silver, Crude Oil and Natural Gas — with option chain OI analysis, basis tracking, volatility spike detection, global macro news sentiment and ML trend analysis using commodity-specific models.
For traders who operate across both equity and commodity markets, this multi-asset signal coverage under one roof is a significant practical advantage.
Intraday Trading Signals — How They Work
Intraday trading signals are the most time-sensitive category. TradePulse generates them through a continuous process that runs from market open to close:
Live Data Ingestion
Option chain data, OI changes, volume, Greeks and IV are pulled from NSE and MCX feeds and updated throughout the trading session in real time.
Pattern Detection
The ML engine scans for known signal patterns — PCR divergence, OI momentum breakouts, volatility spike, gamma zone breach — and flags them as they form.
Multi-Layer Confirmation
A signal is confirmed only when multiple data layers agree — OI momentum bullish + PCR rising + ML model bullish + smart money net put writing.
Confidence Scoring
Each intraday signal is assigned a confidence score. Higher agreement across data layers produces higher-confidence signals that traders can size into appropriately.
Risk Override Check
Before a signal is surfaced, the risk engine checks market regime. If conditions are high-risk (extreme IV, low liquidity, regime uncertainty), the signal is flagged with a caution warning regardless of directional confidence.
Trading Signals vs Trading Tips — Know the Difference
India has a massive market for trading tips — WhatsApp groups, Telegram channels and social media pages sending "BUY NIFTY 24500 CE" messages. These are not trading signals. They are unverified recommendations with no analytical basis, no transparency and often no accountability.
A genuine AI trading signal shows you the reasoning behind the call — what OI data triggered it, what the PCR says, what the ML model confidence is and what the risk assessment is. This transparency allows you to make an informed decision rather than blindly following someone else's call.
Furthermore, SEBI regulations are increasingly targeting unregistered tip providers. TradePulse is a market analytics platform — it provides signals as data and analysis, not as investment advice. The difference matters both legally and practically.
How Trading Signals Connect with Option Chain Analysis
Every trading signal on TradePulse starts with option chain analysis. The derivatives market is where institutional traders place their largest bets — and reading that data is the most reliable way to generate high-conviction signals for Indian markets.
Additionally, TradePulse's AI trading engine layers machine learning forecasts on top of option chain signals to produce a unified view — one number, one direction, one confidence level — that you can act on quickly without interpreting multiple conflicting indicators yourself.
Markets Covered for Trading Signals
TradePulse provides trading signals across the following instruments: