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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 17, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.3949NeutralNeutral
USDJPY95.69BullishNeutral
GBPUSD1.6390BearishNeutral
USDCHF1.0798BullishNeutral
AUDUSD0.7951BearishNeutral
USDCAD1.1315NeutralNeutral
EURJPY133.48BullishNeutral
EURGBP0.8511BullishNeutral
EURCHF1.5062BullishNeutral
EURAUD1.7544BullishNeutral
EURCAD1.5783BullishNeutral
GBPJPY156.84BearishNeutral
GBPCHF1.7698BearishNeutral
GBPAUD 2.0614BearishNeutral
GBPCAD1.8545BearishNeutral
CHFJPY88.62BullishNeutral
AUDJPY76.08NeutralNeutral
AUDCHF0.8585BearishNeutral
AUDCAD0.8997BearishNeutral
CADJPY84.57BullishNeutral
at 7:47 PM

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