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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 21, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.3905BearishNeutral
USDJPY94.18BullishNeutral
GBPUSD1.5844BearishNeutral
USDCHF1.0923BullishNeutral
AUDUSD0.7784BearishNeutral
USDCAD1.1362BullishNeutral
EURJPY130.96BullishNeutral
EURGBP0.8776BullishNeutral
EURCHF1.5188BullishNeutral
EURAUD1.7864BullishNeutral
EURCAD1.5799BullishNeutral
GBPJPY149.22BullishNeutral
GBPCHF1.7306BearishNeutral
GBPAUD 2.0355BearishNeutral
GBPCAD1.8002BearishNeutral
CHFJPY86.22BullishNeutral
AUDJPY73.31BullishNeutral
AUDCHF0.8502BearishNeutral
AUDCAD0.8844BearishNeutral
CADJPY82.89BullishNeutral
at 6:43 PM

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