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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.

Tuesday, June 23, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.4067BearishNeutral
USDJPY95.12BullishNeutral
GBPUSD1.6425BearishNeutral
USDCHF1.0669BullishNeutral
AUDUSD0.7921BearishNeutral
USDCAD1.1503BearishNeutral
EURJPY133.81BullishNeutral
EURGBP0.8564BullishNeutral
EURCHF1.5008BullishNeutral
EURAUD1.7759BullishNeutral
EURCAD1.6181BearishNeutral
GBPJPY156.23BearishNeutral
GBPCHF1.7524BearishNeutral
GBPAUD 2.0736BearishNeutral
GBPCAD1.8894BearishNeutral
CHFJPY89.16BullishNeutral
AUDJPY75.34NeutralNeutral
AUDCHF0.8451BearishNeutral
AUDCAD0.9112BearishNeutral
CADJPY82.69BullishNeutral
at 7:03 PM

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