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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, May 27, 2009

Bullish signal for USDJPY, Bearish for GBPUSD



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.3829BearishNeutral
USDJPY95.57BullishBullish
GBPUSD1.5955BearishBearish
USDCHF1.0927BullishNeutral
AUDUSD0.7786BearishNeutral
USDCAD1.1210BullishNeutral
EURJPY132.16BullishNeutral
EURGBP0.8668BullishNeutral
EURCHF1.5111BullishNeutral
EURAUD1.7761BullishNeutral
EURCAD1.5502BullishNeutral
GBPJPY152.48NeutralNeutral
GBPCHF1.7434BearishNeutral
GBPAUD 2.0492BearishNeutral
GBPCAD1.7886BearishNeutral
CHFJPY87.46BullishNeutral
AUDJPY74.41BullishNeutral
AUDCHF0.8508BearishNeutral
AUDCAD0.8728NeutralNeutral
CADJPY85.25BullishNeutral
at 7:24 PM

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