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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 21, 2009

Bullish signal for USDJPY, EURJPY and EURAUD, Bearish for AUDUSD



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.2948BearishNeutral
USDJPY98.70BullishBullish
GBPUSD1.4677BearishNeutral
USDCHF1.1671BullishNeutral
AUDUSD0.7093BearishBearish
USDCAD1.2368BullishNeutral
EURJPY127.80BullishBullish
EURGBP0.8822BullishNeutral
EURCHF1.5112BullishNeutral
EURAUD1.8255BullishBullish
EURCAD1.6014BullishNeutral
GBPJPY144.86BearishNeutral
GBPCHF1.7130BearishNeutral
GBPAUD 2.0692BullishNeutral
GBPCAD1.8153BearishNeutral
CHFJPY84.57NeutralNeutral
AUDJPY70.01BearishNeutral
AUDCHF0.8278BearishNeutral
AUDCAD0.8773BearishNeutral
CADJPY79.80NeutralNeutral
at 7:32 PM

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