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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.

Wednesday, April 22, 2009

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



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.3002BearishNeutral
USDJPY98.01BullishBullish
GBPUSD1.4479BearishNeutral
USDCHF1.1635BullishNeutral
AUDUSD0.7064BearishBearish
USDCAD1.2383BullishNeutral
EURJPY127.43BullishBullish
EURGBP0.8980BullishNeutral
EURCHF1.5128BullishNeutral
EURAUD1.8406BullishBullish
EURCAD1.6100BullishNeutral
GBPJPY141.91BearishNeutral
GBPCHF1.6846BearishNeutral
GBPAUD 2.0497BullishNeutral
GBPCAD1.7929BearishNeutral
CHFJPY84.24BullishNeutral
AUDJPY69.23BearishNeutral
AUDCHF0.8219BearishNeutral
AUDCAD0.8747BearishNeutral
CADJPY79.15NeutralNeutral
at 7:16 PM

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