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How does this Forex Signal System work?

This Forex Signal System is based on 2 key values:

Spot vs Model rate: For each pair is estimated a value given by fundamentals (economic growth, trade balance, commodity prices, uncertainty and panic, etc). This value is called Model rate. If the spot rate is less than the model rate, then the signal is Bullish; if it is equal or close, signal is neutral; and if the spot rate is higher than the rate model, then the signal is Bearish.
Market Sentiment Index: The index is calculated based on the forecasts of different agencies (weighted by forecast accuracy). While most agencies say that the pair will go up, the higher the index. If the index is higher than 2 / 3, then the signal is Bullish. If it is less than 1 / 3, then the signal is Bearish. If the value is between 1 / 3 and 2 / 3 the signal is Neutral.

If both match, then we have a signal.
The purpose of the signals is only to indicate where the market will move. The system does not provide profit objectives or stops loss, allowing traders the freedom to choose the levels that would accommodate more. If you need support or resistance levels to set your goals, they can be found here.

Wednesday, May 13, 2009

Bearish signal for EURUSD and AUDUSD, Bullish for USDCHF and USDCAD



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.3585BearishBearish
USDJPY95.42BullishNeutral
GBPUSD1.5146BearishNeutral
USDCHF1.1075BullishBullish
AUDUSD0.7536BearishBearish
USDCAD1.1740BullishBullish
EURJPY129.63BullishNeutral
EURGBP0.8969BullishNeutral
EURCHF1.5045BullishNeutral
EURAUD1.8027BullishNeutral
EURCAD1.5949NeutralNeutral
GBPJPY144.52BullishNeutral
GBPCHF1.6774BullishNeutral
GBPAUD 2.0098BullishNeutral
GBPCAD1.7781BearishNeutral
CHFJPY86.16BullishNeutral
AUDJPY71.91BullishNeutral
AUDCHF0.8346NeutralNeutral
AUDCAD0.8847BearishNeutral
CADJPY81.28BullishNeutral
at 7:13 PM

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