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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, November 12, 2009

Bearish signal for USDCAD, Bullish for CADJPY



PairsSpotSpot vs Model Market Sentiment Index
EURUSD1.4859BullishNeutral
USDJPY90.20BearishNeutral
GBPUSD1.6586BearishNeutral
USDCHF1.0166BearishNeutral
AUDUSD0.9254BullishNeutral
USDCAD1.0552BearishBearish
EURJPY134.03BullishNeutral
EURGBP0.8959BullishNeutral
EURCHF1.5106BullishNeutral
EURAUD1.6057BullishNeutral
EURCAD1.5679BullishNeutral
GBPJPY149.61BearishNeutral
GBPCHF1.6861BearishNeutral
GBPAUD 1.7923BearishNeutral
GBPCAD1.7502BearishNeutral
CHFJPY88.73BullishNeutral
AUDJPY83.47NeutralNeutral
AUDCHF0.9408BearishNeutral
AUDCAD0.9765BearishNeutral
CADJPY85.48BullishBullish
at 11:26 PM

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