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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.

Monday, April 6, 2009

Bearish signal for EURUSD and AUDUSD, Bullish for USDCHF



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.3361BearishBearish
USDJPY100.62NeutralNeutral
GBPUSD1.4676BearishNeutral
USDCHF1.1368BullishBullish
AUDUSD0.7126BearishBearish
USDCAD1.2415BullishNeutral
EURJPY134.44BearishNeutral
EURGBP0.9104BullishNeutral
EURCHF1.5189BearishNeutral
EURAUD1.8750BullishNeutral
EURCAD1.6588BearishNeutral
GBPJPY147.67BullishNeutral
GBPCHF1.6684BullishNeutral
GBPAUD 2.0595BearishNeutral
GBPCAD1.8220BearishNeutral
CHFJPY88.51BullishNeutral
AUDJPY71.70BearishNeutral
AUDCHF0.8101BearishNeutral
AUDCAD0.8847BearishNeutral
CADJPY81.05BullishNeutral
at 11:55 PM

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