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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.

Wednesday, August 26, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.4244BullishNeutral
USDJPY93.85BullishNeutral
GBPUSD1.6232BullishNeutral
USDCHF1.0681BearishNeutral
AUDUSD0.8263BullishNeutral
USDCAD1.0975BullishNeutral
EURJPY133.68BullishNeutral
EURGBP0.8775NeutralNeutral
EURCHF1.5214BullishNeutral
EURAUD1.7238BullishNeutral
EURCAD1.5633BullishNeutral
GBPJPY152.34BullishNeutral
GBPCHF1.7337BullishNeutral
GBPAUD 1.9644BullishNeutral
GBPCAD1.7815BullishNeutral
CHFJPY87.87BullishNeutral
AUDJPY77.55BullishNeutral
AUDCHF0.8826NeutralNeutral
AUDCAD0.9069BullishNeutral
CADJPY85.51BullishNeutral
at 10:04 PM

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