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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 14, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.4616NeutralNeutral
USDJPY91.06BullishNeutral
GBPUSD1.6615BullishNeutral
USDCHF1.0347BullishNeutral
AUDUSD0.8604BearishNeutral
USDCAD1.0836BearishNeutral
EURJPY133.09BullishNeutral
EURGBP0.8797BearishNeutral
EURCHF1.5123BullishNeutral
EURAUD1.6987BullishNeutral
EURCAD1.5838BearishNeutral
GBPJPY151.30BullishNeutral
GBPCHF1.7192BullishNeutral
GBPAUD 1.9311BullishNeutral
GBPCAD1.8004BearishNeutral
CHFJPY88.01BullishNeutral
AUDJPY78.35BullishNeutral
AUDCHF0.8903NeutralNeutral
AUDCAD0.9323BearishNeutral
CADJPY84.03BullishNeutral
at 11:31 PM

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