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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.

Sunday, November 22, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.4917BullishNeutral
USDJPY88.91BullishNeutral
GBPUSD1.6511BearishNeutral
USDCHF1.0133BearishNeutral
AUDUSD0.9195BullishNeutral
USDCAD1.0658BearishNeutral
EURJPY132.63BullishNeutral
EURGBP0.9035BullishNeutral
EURCHF1.5115BullishNeutral
EURAUD1.6223BullishNeutral
EURCAD1.5899BearishNeutral
GBPJPY146.80BearishNeutral
GBPCHF1.6731BearishNeutral
GBPAUD 1.7956BearishNeutral
GBPCAD1.7597BearishNeutral
CHFJPY87.74BullishNeutral
AUDJPY81.75BullishNeutral
AUDCHF0.9317NeutralNeutral
AUDCAD0.9800BearishNeutral
CADJPY83.42BullishNeutral
at 10:57 PM

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