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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, April 19, 2009

Bullish signal for USDJPY, Bearish for AUDUSD



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.2985BearishNeutral
USDJPY99.15BullishBullish
GBPUSD1.4742BearishNeutral
USDCHF1.1710BullishNeutral
AUDUSD0.7169BearishBearish
USDCAD1.2167BullishNeutral
EURJPY128.75BullishNeutral
EURGBP0.8808BullishNeutral
EURCHF1.5205NeutralNeutral
EURAUD1.8113BullishNeutral
EURCAD1.5799BullishNeutral
GBPJPY146.17BearishNeutral
GBPCHF1.7263BearishNeutral
GBPAUD 2.0564BullishNeutral
GBPCAD1.7937BearishNeutral
CHFJPY84.67NeutralNeutral
AUDJPY71.08BearishNeutral
AUDCHF0.8395BearishNeutral
AUDCAD0.8723BearishNeutral
CADJPY81.49BearishNeutral
at 8:51 PM

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