Forex Trading Using Intermarket Analysis

ProoF is in real Trading
Obviously, no neural network nor any other trading tool can give you 
100% predictive accuracy. Unforeseen events and random price action 
continue to produce uncertain markets. However, the most important 
focus is to achieve the most accurate market forecasts as possible.
Neural networks are excellent mathematical tools for finding hidden 
patterns and relationships in seemingly disparate data and making 
highly accurate short-term market forecasts in a consistent, non-
subjective, quantitative manner. This can be seen in test results with 
VantagePoint, which is nearly 80% accurate over all the markets it 
analyzes and forecasts (Figure 6.3).
If traders can appreciate the value of having intermarket-based trend 
forecasts, giving them a broader vantage point on the markets than 
could otherwise be achieved by focusing solely upon the internal 
dynamics of one market at a time, then traders will become believers 

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t r a d e s e c r e t s
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in intermarket analysis and the power of neural networks as pattern 
recognition and forecasting tools.
source: Market technologies, LLc (www.Markettechnologies.com)
vantagepoint aCCuraCy figures for eaCh market. no method Can 
prediCt market movements with 100% aCCuraCy, but vantagepoint’s 
nearly 80% aCCuraCy rates for short-term foreCasts put probabilities 
on the trader’s side and improve the odds of trading suCCessfully.
F
igure
6.3.

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7
Once you understand the basics of trading in the forex market, know 
some of the fundamental factors that affect it and are familiar with 
various technical analysis approaches briefly discussed earlier in this 
book, including different technical indicators that help identify trend 
and momentum, the next big step is to move from theory to practice. 
It may seem like this should be an easy process, but the fact is that 
it isn’t for many, if not most, novice traders. Putting all of the pieces 
together about how the financial markets function and learning the 
nuances of trading, as well as formulating a coherent and sound trad-
ing strategy, can be an insurmountable challenge for new traders.
Let’s face it. If it were really as easy as some would suggest, every 
new trader would become a self-made millionaire overnight. But that’s 
not the case.