Using Intermarket Analysis _1

trade secrets As with those articles in Commodities and Futures nearly twenty-five years ago, this book presents sound, practical information about forex trading, focusing on the benefit of analytic trading software that can make highly accurate short-term forecasts of the market direction of this exciting and potentially highly lucrative trading arena. DARRELL R. JOBMAN ____________________________ Darrell Jobman is an acknowledged authority on the financial markets and has been writing about them for over 35 years. After spending nearly 20 years as editor of Futures Magazine Mr. Jobman is now Editor-in-Chief for www.TradingEducation.com. Mr. Jobman has authored and/or edited six books including The Handbook of Technical Analysis as well as trading materials for both the Chicago Mercantile Exchange and the Chicago Board of Trade. Xiv PPreFaCe E ForeX trading using interMarket anaLysis THis Book exPlores the application of intermarket analy-sis to the foreign exchange market, the world’s largest and most widely traded financial market. Intermarket analysis helps traders identify and anticipate changes in trend direction and prices due to influences of other related markets as financial markets have become interconnected and interdependent in today’s global economy. These markets include forex futures and options as well as major cash forex pairs, which are affected not only by other currencies but by related markets such the S&P 500 Index, gold, crude oil, and interest rates. As the world economy of the twenty-first century continues to grow and as new advances in information technologies continue to be introduced, financial markets will become even more globalized and sophisticated than they are today, increasing the central role that the forex markets play in the global economy. Since its introduction in the 1980s, intermarket analysis has become a critical facet of the overall field of technical analysis because it empowers individual traders to make more effective trading decisions based upon the linkages between related financial markets. By incor-porating intermarket analysis into trading plans and strategies instead of limiting the scope of analysis to each individual market, traders can make these relationships and interconnections between markets work for instead of against them. Forex markets are especially good candidates for intermarket analysis because of the key role of the U. S. dollar in most major currency pairs while other currencies tend to move in concert against the dollar. What influences one currency often influences many other currencies, usually not in lockstep but to a greater or lesser degree, depending on the circumstance. Knowing what is occurring in various currencies and other related markets can provide traders with both a broader perspective and greater insight into forex market dynamics. It can Xvii trade secrets thereby provide an early warning of impending changes in trend direc-tion in the target market. This allows traders to make more effective and decisive trading decisions than would be possible by relying on traditional single-market technical analysis indicators that too often lag the market. This book is addressed primarily to traders and investors who use per-sonal computers and the Internet to analyze forex markets and make their own trading decisions. The book also offers insights into how day traders and position traders in both the cash and futures markets can improve their trading performance and achieve a serious competi-tive advantage in today’s globally interdependent financial markets. It will interest both experienced traders and newcomers to forex markets who are inclined toward technical analysis and recognize the potential financial benefits of incorporating intermarket analysis into their trad-ing strategies. Louis B. Mendelsohn Xviii ... - tailieumienphi.vn