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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.

Thursday, May 7, 2009

Bearish signal for AUDUSD, Bullish for USDCAD



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.3355BearishNeutral
USDJPY99.14BullishNeutral
GBPUSD1.4972BearishNeutral
USDCHF1.1320BullishNeutral
AUDUSD0.7511BearishBearish
USDCAD1.1719BullishBullish
EURJPY132.40BullishNeutral
EURGBP0.8920BullishNeutral
EURCHF1.5118BullishNeutral
EURAUD1.7781BullishNeutral
EURCAD1.5651BullishNeutral
GBPJPY148.43BullishNeutral
GBPCHF1.6948NeutralNeutral
GBPAUD 1.9933BullishNeutral
GBPCAD1.7546NeutralNeutral
CHFJPY87.58BullishNeutral
AUDJPY74.46BearishNeutral
AUDCHF0.8502BearishNeutral
AUDCAD0.8802BearishNeutral
CADJPY84.60BullishNeutral
at 10:55 PM

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