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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, September 7, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.4340BullishNeutral
USDJPY92.79BullishNeutral
GBPUSD1.6345BullishNeutral
USDCHF1.0589NeutralNeutral
AUDUSD0.8549BearishNeutral
USDCAD1.0773BearishNeutral
EURJPY133.06BullishNeutral
EURGBP0.8773BearishNeutral
EURCHF1.5185BullishNeutral
EURAUD1.6774BullishNeutral
EURCAD1.5448NeutralNeutral
GBPJPY151.67BullishNeutral
GBPCHF1.7308BullishNeutral
GBPAUD 1.9119BullishNeutral
GBPCAD1.7608BullishNeutral
CHFJPY87.63BullishNeutral
AUDJPY79.33BearishNeutral
AUDCHF0.9053BearishNeutral
AUDCAD0.9210BearishNeutral
CADJPY86.13BullishNeutral
at 11:46 PM

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