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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.

Tuesday, April 28, 2009

Bullish signal for USDJPY and USDCAD, Bearish for AUDUSD



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.3125BearishNeutral
USDJPY96.51BullishBullish
GBPUSD1.4619BearishNeutral
USDCHF1.1440BullishNeutral
AUDUSD0.7056BearishBearish
USDCAD1.2214BullishBullish
EURJPY126.67BullishNeutral
EURGBP0.8978BullishNeutral
EURCHF1.5015BullishNeutral
EURAUD1.8601BullishNeutral
EURCAD1.6031BullishNeutral
GBPJPY141.09BearishNeutral
GBPCHF1.6724BearishNeutral
GBPAUD 2.0719BullishNeutral
GBPCAD1.7856BearishNeutral
CHFJPY84.36BullishNeutral
AUDJPY68.10BearishNeutral
AUDCHF0.8072BearishNeutral
AUDCAD0.8618BearishNeutral
CADJPY79.02BullishNeutral
at 7:20 PM

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