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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 16, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.4153BullishNeutral
USDJPY94.53BullishNeutral
GBPUSD1.6452BullishNeutral
USDCHF1.0753BearishNeutral
AUDUSD0.8235BullishNeutral
USDCAD1.1037NeutralNeutral
EURJPY133.79BullishNeutral
EURGBP0.8603BullishNeutral
EURCHF1.5219BullishNeutral
EURAUD1.7186BullishNeutral
EURCAD1.5621BullishNeutral
GBPJPY155.52BullishNeutral
GBPCHF1.7691BearishNeutral
GBPAUD 1.9978BearishNeutral
GBPCAD1.8158BullishNeutral
CHFJPY87.91BullishNeutral
AUDJPY77.85BullishNeutral
AUDCHF0.8855NeutralNeutral
AUDCAD0.9089BullishNeutral
CADJPY85.65BullishNeutral
at 9:53 PM

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