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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.

Wednesday, August 5, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.4409BullishNeutral
USDJPY94.88NeutralNeutral
GBPUSD1.6997BearishNeutral
USDCHF1.0611BearishNeutral
AUDUSD0.8405NeutralBullish
USDCAD1.0703BullishNeutral
EURJPY136.71BullishNeutral
EURGBP0.8477BullishNeutral
EURCHF1.5289BullishNeutral
EURAUD1.7143BullishNeutral
EURCAD1.5422BullishNeutral
GBPJPY161.27BearishNeutral
GBPCHF1.8036BearishNeutral
GBPAUD 2.0222BearishNeutral
GBPCAD1.8192BullishNeutral
CHFJPY89.42BullishNeutral
AUDJPY79.75NeutralNeutral
AUDCHF0.8919BearishNeutral
AUDCAD0.8996BullishNeutral
CADJPY88.65BearishNeutral
at 7:31 PM

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