Forex Trading Using Intermarket Analysis

Plenty of information.
Governments issue dozens of reports every 
month that influence the forex market (see Chapter 3). Information is 
widely disseminated by the financial media. With advances in the Internet 

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and financial news services, prices and economic data are delivered 
within moments of being released and are available to all forex traders 
throughout the world. If anything, there may be too much information 
for traders to sort through, which has its own negative consequences.
simplicity.
Traders do not have to watch or analyze the reports 
and price movements of hundreds of companies or mutual funds, 
trying to figure out which to buy or sell. With all of the funda-
mental information coming from many sources every day, traders 
can make trading life easier by concentrating on the forex market 
because they can easily limit themselves to monitoring movements 
of a half-dozen forex pairs. In addition, traders do not have to worry 
about going short or selling on a downtick as they do with equi-
ties because it is as easy to sell as it is to buy in the forex market. 
good Technical market.
Once traders understand the basics of 
technical analysis and how they can apply a software program to 
trading, they can extend that knowledge to all forex markets with-
out having to learn and understand a whole new set of market fac-
tors. Because currencies are influenced by government policies 
and economic developments that usually stretch over long periods 
of time, forex markets have a reputation for being good trending 
markets. As a result, if traders keep an eye on economic condi-
tions and charts as they evolve, they may find that forex market 
moves are easier to predict than are movements in other markets. A 
glance at a currency chart such as the Canadian dollar is enough to 
show clear long-term trends (Figure 1.1), which often have enough 
movement within them to satisfy the trader looking for short-term 
swing moves, as indicated by the bold-face bars in Figure 1.2.