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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.

Tuesday, October 6, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.4685BearishNeutral
USDJPY88.93NeutralBullish
GBPUSD1.5880BullishNeutral
USDCHF1.0291BullishNeutral
AUDUSD0.8873BearishNeutral
USDCAD1.0612BullishBearish
EURJPY130.59BearishNeutral
EURGBP0.9247BearishNeutral
EURCHF1.5112BearishNeutral
EURAUD1.6550BullishNeutral
EURCAD1.5584BullishNeutral
GBPJPY141.22NeutralNeutral
GBPCHF1.6342BullishNeutral
GBPAUD 1.7897BullishNeutral
GBPCAD1.6852BullishNeutral
CHFJPY86.42BearishNeutral
AUDJPY78.91BearishNeutral
AUDCHF0.9131BearishNeutral
AUDCAD0.9416BearishNeutral
CADJPY83.80BearishBullish
at 10:26 PM

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