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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.

Sunday, August 2, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.4246BullishNeutral
USDJPY94.75NeutralNeutral
GBPUSD1.6734BearishNeutral
USDCHF1.0712BearishNeutral
AUDUSD0.8365NeutralBullish
USDCAD1.0774BullishNeutral
EURJPY134.98BullishNeutral
EURGBP0.8513BullishNeutral
EURCHF1.5260BullishNeutral
EURAUD1.7030BullishNeutral
EURCAD1.5349BullishNeutral
GBPJPY158.55BearishNeutral
GBPCHF1.7925BearishNeutral
GBPAUD 2.0005NeutralNeutral
GBPCAD1.8029BullishNeutral
CHFJPY88.45BullishNeutral
AUDJPY79.26NeutralNeutral
AUDCHF0.8961BearishNeutral
AUDCAD0.9012BullishNeutral
CADJPY87.94BearishNeutral
at 10:39 PM

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