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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.

Wednesday, November 11, 2009

Bearish signal for USDCAD and GBPCAD, Bullish for CADJPY



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.5004BullishNeutral
USDJPY89.68NeutralNeutral
GBPUSD1.6593BearishNeutral
USDCHF1.0065BearishNeutral
AUDUSD0.9350NeutralNeutral
USDCAD1.0431BearishBearish
EURJPY134.56BullishNeutral
EURGBP0.9042BullishNeutral
EURCHF1.5102BullishNeutral
EURAUD1.6047BullishNeutral
EURCAD1.5651BullishNeutral
GBPJPY148.81BearishNeutral
GBPCHF1.6701BearishNeutral
GBPAUD 1.7747BearishNeutral
GBPCAD1.7308BearishBearish
CHFJPY89.10BullishNeutral
AUDJPY83.85NeutralNeutral
AUDCHF0.9411BearishNeutral
AUDCAD0.9753BearishNeutral
CADJPY85.97BullishBullish
at 10:00 PM

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