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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 6, 2009

Neutral signal for all pairs

PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.3990BullishNeutral
USDJPY95.31BullishNeutral
GBPUSD1.6290BullishNeutral
USDCHF1.0837NeutralNeutral
AUDUSD0.7972BullishNeutral
USDCAD1.1586BearishNeutral
EURJPY133.34BullishNeutral
EURGBP0.8588BullishNeutral
EURCHF1.5161BullishNeutral
EURAUD1.7549BearishNeutral
EURCAD1.6209BearishNeutral
GBPJPY155.26BullishNeutral
GBPCHF1.7653NeutralNeutral
GBPAUD 2.0434BearishNeutral
GBPCAD1.8874BearishNeutral
CHFJPY87.95BullishNeutral
AUDJPY75.98BullishNeutral
AUDCHF0.8639BullishNeutral
AUDCAD0.9236BearishNeutral
CADJPY82.26BullishNeutral
at 7:55 PM

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