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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, June 3, 2009

Bullish signal for USDJPY, Bearish for AUDUSD



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.4154BearishNeutral
USDJPY96.01BullishBullish
GBPUSD1.6313BearishNeutral
USDCHF1.0704BullishNeutral
AUDUSD0.8021BearishBearish
USDCAD1.1095BullishNeutral
EURJPY135.89BullishNeutral
EURGBP0.8677BullishNeutral
EURCHF1.5150BullishNeutral
EURAUD1.7646BullishNeutral
EURCAD1.5704BullishNeutral
GBPJPY156.62BearishNeutral
GBPCHF1.7461BearishNeutral
GBPAUD 2.0338BullishNeutral
GBPCAD1.8099BearishNeutral
CHFJPY89.70BullishNeutral
AUDJPY77.01BearishNeutral
AUDCHF0.8586BearishNeutral
AUDCAD0.8899BearishNeutral
CADJPY86.53NeutralNeutral
at 7:18 PM

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