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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.

Tuesday, August 18, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.4129BullishNeutral
USDJPY94.81NeutralNeutral
GBPUSD1.6548BullishNeutral
USDCHF1.0756BearishNeutral
AUDUSD0.8268BullishNeutral
USDCAD1.1016NeutralNeutral
EURJPY133.96BullishNeutral
EURGBP0.8538BullishNeutral
EURCHF1.5197BullishNeutral
EURAUD1.7089BullishNeutral
EURCAD1.5565BullishNeutral
GBPJPY156.89BullishNeutral
GBPCHF1.7799BearishNeutral
GBPAUD 2.0015BearishNeutral
GBPCAD1.8229BullishNeutral
CHFJPY88.15BullishNeutral
AUDJPY78.39BullishNeutral
AUDCHF0.8893BearishNeutral
AUDCAD0.9108BullishNeutral
CADJPY86.07NeutralNeutral
at 7:08 PM

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