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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.

Monday, May 11, 2009

Bullish signal for USDJPY and USDCAD, Bearish for AUDUSD



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.3594BearishNeutral
USDJPY97.57BullishBullish
GBPUSD1.5134BearishNeutral
USDCHF1.1085BullishNeutral
AUDUSD0.7593BearishBearish
USDCAD1.1650BullishBullish
EURJPY132.64BullishNeutral
EURGBP0.8982BullishNeutral
EURCHF1.5069BullishNeutral
EURAUD1.7903BullishNeutral
EURCAD1.5837BullishNeutral
GBPJPY147.66BullishNeutral
GBPCHF1.6776BullishNeutral
GBPAUD 1.9932BullishNeutral
GBPCAD1.7631BearishNeutral
CHFJPY88.02BullishNeutral
AUDJPY74.08NeutralNeutral
AUDCHF0.8417BearishNeutral
AUDCAD0.8846BearishNeutral
CADJPY83.75BullishNeutral
at 7:50 PM

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