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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 4, 2009

Bullish signal for USDJPY, Bearish for AUDUSD



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.3408BearishNeutral
USDJPY98.92BullishBullish
GBPUSD1.5030BearishNeutral
USDCHF1.1261BullishNeutral
AUDUSD0.7416BearishBearish
USDCAD1.1731BullishNeutral
EURJPY132.63BullishNeutral
EURGBP0.8921BullishNeutral
EURCHF1.5099BullishNeutral
EURAUD1.8080BullishNeutral
EURCAD1.5729BullishNeutral
GBPJPY148.68BullishNeutral
GBPCHF1.6925NeutralNeutral
GBPAUD 2.0267NeutralNeutral
GBPCAD1.7632BearishNeutral
CHFJPY87.84NeutralNeutral
AUDJPY73.36BullishNeutral
AUDCHF0.8351NeutralNeutral
AUDCAD0.8700NeutralNeutral
CADJPY84.32BullishNeutral
at 8:18 PM

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