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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, July 7, 2009

Neutral signal for all pairs

PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.3892BullishNeutral
USDJPY94.60BullishNeutral
GBPUSD1.6080BullishNeutral
USDCHF1.0905BearishNeutral
AUDUSD0.7860BullishNeutral
USDCAD1.1670BearishNeutral
EURJPY131.42BullishNeutral
EURGBP0.8639BullishNeutral
EURCHF1.5149BullishNeutral
EURAUD1.7674BearishNeutral
EURCAD1.6212BearishNeutral
GBPJPY152.12BullishNeutral
GBPCHF1.7535BullishNeutral
GBPAUD 2.0458BearishNeutral
GBPCAD1.8765BearishNeutral
CHFJPY86.75BullishNeutral
AUDJPY74.36BullishNeutral
AUDCHF0.8571BullishNeutral
AUDCAD0.9173NeutralNeutral
CADJPY81.06BullishNeutral
at 7:28 PM

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