Forex Trading Using Intermarket Analysis

inTermarkeT analysis
No country, no currency, no economy, and no market is isolated in 
today’s global economy. Looking at one market means looking at 
a number of related markets to get the full story about the market 
forces driving any one market. With forex, that obviously means other 
currencies, but it also means interest rates, equities markets, and 
commodities, particularly international markets such as gold and oil. 
Single-market analysis just is not sufficient anymore.
aCCUraTe, reliaBle markeT ForeCasTing
The trader who wants to have an edge in today’s trading environment 
needs to look ahead, using techniques and tools such as predicted 
moving averages that do not lag behind the market but have the ability 
to anticipate what is likely to happen to price and trend direction in 
the near future. Because of their trending tendencies, forex markets 
are especially good candidates for such market forecasting. Failure 
to incorporate leading indicators and information on related markets 
into trading strategies puts traders at a great disadvantage in compet-
ing with other more sophisticated traders, including professionals who 
make their livelihood trading forex markets.
Neural networks are not only well-suited to analyzing these markets 
from both a single-market and intermarket perspective but can also 
incorporate fundamental data as inputs. By using the computational 
modeling capabilities of neural networks in a structured framework 
that synthesizes these three approaches and integrates seemingly 
disparate technical, intermarket, and fundamental data, quantitative 
trend and market forecasting will continue to be at the cutting edge 
of financial market analysis in the early decades of the twenty-first 
century. Even hurricaneomic data can be incorporated into forecasting 

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models. Literally any data that may have a bearing on financial mar-
kets can be used to determine its relevance to market forecasting.