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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, September 2, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.4266BullishNeutral
USDJPY92.17BullishNeutral
GBPUSD1.6250BullishNeutral
USDCHF1.0607NeutralNeutral
AUDUSD0.8340NeutralNeutral
USDCAD1.1039BearishNeutral
EURJPY131.49BullishNeutral
EURGBP0.8779BearishNeutral
EURCHF1.5132BullishNeutral
EURAUD1.7106BullishNeutral
EURCAD1.5748BearishNeutral
GBPJPY149.78BullishNeutral
GBPCHF1.7236BullishNeutral
GBPAUD 1.9484BullishNeutral
GBPCAD1.7938BearishNeutral
CHFJPY86.90BullishNeutral
AUDJPY76.87BullishNeutral
AUDCHF0.8846NeutralNeutral
AUDCAD0.9207BearishNeutral
CADJPY83.49BullishNeutral
at 10:07 PM

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