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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.

Thursday, August 6, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.4355BullishNeutral
USDJPY95.38NeutralNeutral
GBPUSD1.6769BearishNeutral
USDCHF1.0646BearishNeutral
AUDUSD0.8382NeutralNeutral
USDCAD1.0773BullishNeutral
EURJPY136.92BullishNeutral
EURGBP0.8560BullishNeutral
EURCHF1.5282BullishNeutral
EURAUD1.7126BullishNeutral
EURCAD1.5465BullishNeutral
GBPJPY159.94BearishNeutral
GBPCHF1.7852BearishNeutral
GBPAUD 2.0006BearishNeutral
GBPCAD1.8065BullishNeutral
CHFJPY89.59BullishNeutral
AUDJPY79.95NeutralNeutral
AUDCHF0.8923BearishNeutral
AUDCAD0.9030BullishNeutral
CADJPY88.54BearishNeutral
at 9:39 PM

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