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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.

Monday, July 13, 2009

Bullish signal for USDJPY, AUDUSD, AUDJPY and CADJPY, Bearish for USDCAD



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.3999BullishNeutral
USDJPY92.97BullishBullish
GBPUSD1.6271BullishNeutral
USDCHF1.0810NeutralNeutral
AUDUSD0.7837BullishBullish
USDCAD1.1503BearishBearish
EURJPY130.15BullishNeutral
EURGBP0.8604BullishNeutral
EURCHF1.5133BullishNeutral
EURAUD1.7863BearishNeutral
EURCAD1.6103BearishNeutral
GBPJPY151.27BullishNeutral
GBPCHF1.7589BullishNeutral
GBPAUD 2.0762BearishNeutral
GBPCAD1.8717BearishNeutral
CHFJPY86.00BullishNeutral
AUDJPY72.86BullishBullish
AUDCHF0.8472BullishNeutral
AUDCAD0.9015BullishNeutral
CADJPY80.82BullishBullish
at 6:56 PM

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