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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.

Thursday, September 3, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.4243BullishNeutral
USDJPY92.69BullishNeutral
GBPUSD1.6313BullishNeutral
USDCHF1.0626NeutralNeutral
AUDUSD0.8388NeutralNeutral
USDCAD1.1026BearishNeutral
EURJPY132.02BullishNeutral
EURGBP0.8731NeutralNeutral
EURCHF1.5135BullishNeutral
EURAUD1.6980BullishNeutral
EURCAD1.5704BearishNeutral
GBPJPY151.21BullishNeutral
GBPCHF1.7334BullishNeutral
GBPAUD 1.9448BullishNeutral
GBPCAD1.7987BearishNeutral
CHFJPY87.23BullishNeutral
AUDJPY77.75NeutralNeutral
AUDCHF0.8913BearishNeutral
AUDCAD0.9249BearishNeutral
CADJPY84.06BullishNeutral
at 8:52 PM

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