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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.

Thursday, July 2, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.3987BullishNeutral
USDJPY95.94BullishNeutral
GBPUSD1.6380NeutralNeutral
USDCHF1.0855NeutralNeutral
AUDUSD0.7963BullishNeutral
USDCAD1.1592BearishNeutral
EURJPY134.19BullishNeutral
EURGBP0.8539BullishNeutral
EURCHF1.5183BullishNeutral
EURAUD1.7565BearishNeutral
EURCAD1.6214BearishNeutral
GBPJPY157.15BullishNeutral
GBPCHF1.7780BearishNeutral
GBPAUD 2.0570BearishNeutral
GBPCAD1.8988BearishNeutral
CHFJPY88.38BullishNeutral
AUDJPY76.40BullishNeutral
AUDCHF0.8644BullishNeutral
AUDCAD0.9231BearishNeutral
CADJPY82.76BullishNeutral
at 10:02 PM

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