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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 24, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.4283BullishNeutral
USDJPY93.99BullishNeutral
GBPUSD1.6383BullishNeutral
USDCHF1.0619BearishNeutral
AUDUSD0.8348NeutralNeutral
USDCAD1.0779BullishNeutral
EURJPY134.25BullishNeutral
EURGBP0.8718NeutralNeutral
EURCHF1.5167BullishNeutral
EURAUD1.7109BullishNeutral
EURCAD1.5396BullishNeutral
GBPJPY153.98BullishNeutral
GBPCHF1.7397BullishNeutral
GBPAUD 1.9625BullishNeutral
GBPCAD1.7659BullishNeutral
CHFJPY88.51BullishNeutral
AUDJPY78.46BullishNeutral
AUDCHF0.8865NeutralNeutral
AUDCAD0.8998BullishNeutral
CADJPY87.20BearishNeutral
at 10:23 PM

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