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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, May 24, 2009

Bearish signal for EURUSD and AUDUSD



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.3985BearishBearish
USDJPY94.52BullishNeutral
GBPUSD1.5862BearishNeutral
USDCHF1.0863BullishNeutral
AUDUSD0.7784BearishBearish
USDCAD1.1242BullishNeutral
EURJPY132.19BullishNeutral
EURGBP0.8817BullishNeutral
EURCHF1.5192BullishNeutral
EURAUD1.7966BullishNeutral
EURCAD1.5722BullishNeutral
GBPJPY149.93BullishNeutral
GBPCHF1.7231BearishNeutral
GBPAUD 2.0378BearishNeutral
GBPCAD1.7832BearishNeutral
CHFJPY87.01BullishNeutral
AUDJPY73.57BullishNeutral
AUDCHF0.8456NeutralNeutral
AUDCAD0.8751NeutralNeutral
CADJPY84.08BullishNeutral
at 10:21 PM

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