A method and a device for determining the quality of signal used for measuring a physiological parameter. One embodiment of the present invention is directed towards a pulse oximeter, where the measured physiological parameter includes a patient's pulse rate and blood oxygen saturation. The signal quality, which is indicative of the accuracy and reliability of the measured physiological parameter, is calculated by combining a plurality of signal quality indicators, each of which is an indicator of a quality of the measured signal. The value of the signal quality metric is compared to a threshold and based on this comparison various decisions are made by the medical device. One decision is directed towards deciding whether or not to display the measured physiological parameter, to ensure that only accurate measured values are displayed. Another decision is directed towards providing feedback to guide the clinician to adjust the location of the sensor to a more suitable tissue location.