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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 10, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.4135BullishNeutral
USDJPY96.68BearishNeutral
GBPUSD1.6468BullishNeutral
USDCHF1.0853BearishNeutral
AUDUSD0.8340NeutralNeutral
USDCAD1.0893BullishNeutral
EURJPY136.66BullishNeutral
EURGBP0.8583BullishNeutral
EURCHF1.5341NeutralNeutral
EURAUD1.6948BullishNeutral
EURCAD1.5397BullishNeutral
GBPJPY159.21NeutralNeutral
GBPCHF1.7873BearishNeutral
GBPAUD 1.9746BullishNeutral
GBPCAD1.7939BullishNeutral
CHFJPY89.08BullishNeutral
AUDJPY80.63BearishNeutral
AUDCHF0.9051BearishNeutral
AUDCAD0.9085BullishNeutral
CADJPY88.75BearishNeutral
at 10:59 PM

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