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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 20, 2009

Bearish signal for AUDUSD, Bullish for EURAUD



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.2900BearishNeutral
USDJPY97.84BullishNeutral
GBPUSD1.4470BearishNeutral
USDCHF1.1705BullishNeutral
AUDUSD0.6970BearishBearish
USDCAD1.2402BullishNeutral
EURJPY126.21BullishNeutral
EURGBP0.8915BullishNeutral
EURCHF1.5099BullishNeutral
EURAUD1.8508BullishBullish
EURCAD1.5999BullishNeutral
GBPJPY141.57BearishNeutral
GBPCHF1.6937BearishNeutral
GBPAUD 2.0760BullishNeutral
GBPCAD1.7946BearishNeutral
CHFJPY83.59BullishNeutral
AUDJPY68.19BearishNeutral
AUDCHF0.8158BearishNeutral
AUDCAD0.8644BearishNeutral
CADJPY78.89NeutralNeutral
at 8:00 PM

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