Forex Trading Using Intermarket Analysis

by Louis B. Mendelsohn

Book Overview

This book explores the application of intermarket analysis to the foreign exchange market, the world's largest and most widely traded financial market. Intermarket analysis helps traders identify and... This description may be from another edition of this product.

• Format: Paperback
• Language: English
• ISBN: 1592802958
• ISBN13: 9781592802951
• Release Date: March 2006
• Publisher: Marketplace Books
• Length: 140 Pages
• Weight: 0.65 lbs.
• Dimensions: 0.3" x 5.5" x 8.5"

Customer Reviews

You should enjoy and find value from this primer on forex trading.

Review written by Van K, Tharp, Founder of the Van Tharp Institute If you'd like a good introduction to forex trading, then Lou Mendelsohn's book is a great way to get you started. Most people who enter into a new area have no clue what they are up against, and Mendelsohn's new book does a good job of illustrating the complexities of trading foreign currencies for the beginning trader. Let's look at a few of the chapter titles to see what's under the covers of this compelling little book. What is Forex? Mendelsohn discusses the history and development of this specific market as it has developed over the years from pure intrabank trading to futures contracts to the cash markets that are now available to the average investor. In the chapter entitled, "The Forex Marketplace" Mendelsohn discusses the primary reasons to trade forex. He also covers basic points that are essential to know about how the forex market works, such as how prices are quoted and some of the key pitfalls that a forex trader might face. For example, individuals trading the cash market should be very familiar with the bid/ask spreads being quoted. Although there are no commissions in cash forex trading, that spread can be very large because only the firm with whom you are dealing is quoting the prices. Furthermore, some of those firms may not come under any regulatory jurisdiction. Consequently, you must know what you are getting into when you jump into the forex arena. In the chapter entitled, "Fundamentals and Forex," Mendelsohn lists a number of different reports that can affect the U.S dollar plus other reports that can influence other currencies. If you jump into the market without being aware of a report that could have a major impact on the market, you could face troubles. If you feel intimidated by the forex market at this point, Mendelsohn suggests that you could simplify it all by just looking at price and the trends suggested by the price. However, even this is more complex than just looking at one market because a number of international markets all impact the various currencies. For example, if you want to trade the U.S. dollar versus the euro, Mendelsohn suggests that you need to be aware of what's happening not only with values of other currencies but also with prices of gold, oil and other markets related to the dollar. Mendelsohn has found a solution to this problem by using neural networks to find the 10 markets that have the most influence on a target market and then analyzing the impact of these various markets on the current value of the target market. As the developer of VantagePoint Intermarket Analysis Software, he has been a pioneer in designing software to help traders get through the complex task of processing all of this information. Although the book does not delve into all of the details necessary to build a trading system, such as how to trade forex using stops and exit points, or money management concepts, such a

Fascinating and Ingenious Solution

I was interested in the concept of intermarket analysis after reading an article in Currency Trader Magazine by Barbara Rockefellar. Since I am always open to new ideas (new to me) this seems like a tool that could really add some valuable clues to my trading decision making process. I am VERY interested in the software that has been developed to help automate this process. I'm sure it's not for everyone since everyone does not yet have a success attitude. But while one person will complain that he sells a product in the book, another person will put it into use and become wealthy, happy and fulfilled. This is the case with most everything in business and especially in trading. I consider this book a significant discovery for my own trading business.