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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 28, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.4616NeutralNeutral
USDJPY89.97BullishNeutral
GBPUSD1.5912BullishNeutral
USDCHF1.0326BullishNeutral
AUDUSD0.8737BearishNeutral
USDCAD1.0853BearishNeutral
EURJPY131.50BullishNeutral
EURGBP0.9186BearishNeutral
EURCHF1.5092BullishNeutral
EURAUD1.6729BullishNeutral
EURCAD1.5863BearishNeutral
GBPJPY143.16BullishNeutral
GBPCHF1.6431BullishNeutral
GBPAUD 1.8212BullishNeutral
GBPCAD1.7269BullishNeutral
CHFJPY87.13BullishNeutral
AUDJPY78.61NeutralNeutral
AUDCHF0.9022BearishNeutral
AUDCAD0.9482BearishNeutral
CADJPY82.90BullishNeutral
at 10:30 PM

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