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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 10, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.4603NeutralNeutral
USDJPY91.35BullishNeutral
GBPUSD1.6698NeutralNeutral
USDCHF1.0364BullishNeutral
AUDUSD0.8640BearishNeutral
USDCAD1.0762BearishNeutral
EURJPY133.40BullishNeutral
EURGBP0.8745NeutralNeutral
EURCHF1.5135BullishNeutral
EURAUD1.6902BullishNeutral
EURCAD1.5716BearishNeutral
GBPJPY152.54BullishNeutral
GBPCHF1.7306BullishNeutral
GBPAUD 1.9326BullishNeutral
GBPCAD1.7970BearishNeutral
CHFJPY88.14BullishNeutral
AUDJPY78.93NeutralNeutral
AUDCHF0.8954BearishNeutral
AUDCAD0.9298BearishNeutral
CADJPY84.88BullishNeutral
at 10:34 PM

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