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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 31, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.3945BullishNeutral
USDJPY96.60BullishNeutral
GBPUSD1.5946BearishNeutral
USDCHF1.0841NeutralNeutral
AUDUSD0.7848BearishNeutral
USDCAD1.1136BullishNeutral
EURJPY134.71BullishNeutral
EURGBP0.8745BullishNeutral
EURCHF1.5118BullishNeutral
EURAUD1.7769BullishNeutral
EURCAD1.5529BullishNeutral
GBPJPY154.04BullishNeutral
GBPCHF1.7287BearishNeutral
GBPAUD 2.0319BullishNeutral
GBPCAD1.7757NeutralNeutral
CHFJPY89.11BullishNeutral
AUDJPY75.81NeutralNeutral
AUDCHF0.8508BearishNeutral
AUDCAD0.8740NeutralNeutral
CADJPY86.75BullishNeutral
at 11:18 PM

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