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Deals damage and has a 10% chance to confuse the target.
Signal Beam is a generally outclassed move. As a specially-based Bug-type move, it is completely outclassed by Bug Buzz due to Bug Buzz's higher Base Power. As a coverage move for the many Psychic-types who receive Signal Beam, Shadow Ball is normally a better choice, as many of these Psychic-types will also have Focus Blast or Hidden Power Fighting to cover Dark-types alongside their STAB and Shadow Ball.
Bug Buzz is a more powerful alternative.