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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, October 15, 2009

Neutral signal for all pairs



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.4953BearishNeutral
USDJPY90.63BearishBullish
GBPUSD1.6326BearishNeutral
USDCHF1.0136BullishNeutral
AUDUSD0.9254BearishNeutral
USDCAD1.0300BullishNeutral
EURJPY135.52BearishNeutral
EURGBP0.9159BearishNeutral
EURCHF1.5156BearishNeutral
EURAUD1.6158BullishNeutral
EURCAD1.5402BullishNeutral
GBPJPY147.96BearishBullish
GBPCHF1.6548BullishNeutral
GBPAUD 1.7642BullishNeutral
GBPCAD1.6816BullishNeutral
CHFJPY89.41BearishNeutral
AUDJPY83.87BearishNeutral
AUDCHF0.9380BearishNeutral
AUDCAD0.9532BearishNeutral
CADJPY87.99BearishNeutral
at 10:22 PM

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