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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 23, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.4339BullishNeutral
USDJPY94.86NeutralNeutral
GBPUSD1.6522BullishNeutral
USDCHF1.0591BearishNeutral
AUDUSD0.8394NeutralNeutral
USDCAD1.0788BullishNeutral
EURJPY136.02BullishNeutral
EURGBP0.8679BullishNeutral
EURCHF1.5186BullishNeutral
EURAUD1.7082BullishNeutral
EURCAD1.5469BullishNeutral
GBPJPY156.73BullishNeutral
GBPCHF1.7498BullishNeutral
GBPAUD 1.9683BullishNeutral
GBPCAD1.7824BullishNeutral
CHFJPY89.57BullishNeutral
AUDJPY79.63NeutralNeutral
AUDCHF0.8890BearishNeutral
AUDCAD0.9055BullishNeutral
CADJPY87.93BearishNeutral
at 10:46 PM

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