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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, August 3, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.4413BullishNeutral
USDJPY95.18NeutralNeutral
GBPUSD1.6938BearishNeutral
USDCHF1.0593NeutralNeutral
AUDUSD0.8428BearishNeutral
USDCAD1.0660BullishNeutral
EURJPY137.18BullishNeutral
EURGBP0.8509BullishNeutral
EURCHF1.5268BullishNeutral
EURAUD1.7101BullishNeutral
EURCAD1.5364BullishNeutral
GBPJPY161.22BearishNeutral
GBPCHF1.7942BearishNeutral
GBPAUD 2.0097BearishNeutral
GBPCAD1.8056BullishNeutral
CHFJPY89.85NeutralNeutral
AUDJPY80.22BearishNeutral
AUDCHF0.8928BearishNeutral
AUDCAD0.8984BullishNeutral
CADJPY89.29BearishNeutral
at 7:38 PM

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