Forex Trading using Intermarket Analysis: Discovering Hidden Market Relationships that Provide Early Clues for Price Direction by Louis B. Mendelsohn provides an innovative and comprehensive approach to forex trading, building on the concept of intermarket analysis. Mendelsohn, with his decades of experience in the financial markets and his pioneering work in the field of intermarket analysis, offers valuable insights and methodologies to navigate the complexities of the forex market effectively.
In this book, Mendelsohn explains the concept of intermarket analysis – the study of how different asset classes like stocks, bonds, commodities, and currencies interact and influence each other. He outlines how these interactions can impact currency price movements and trends, offering traders a broader perspective and deeper understanding of the market dynamics.
The book starts with an introduction to the forex market and its fundamental components, including currency pairs, pips, and lots. Mendelsohn then delves into the core of intermarket analysis, demonstrating how to identify and interpret intermarket relationships. He offers a detailed guide on how to use these relationships to predict future price movements and identify profitable trading opportunities.
One of the unique features of “Forex Trading using Intermarket Analysis” is its emphasis on the integration of technology in forex trading. Mendelsohn explores how technological advancements, particularly in software and data analysis, have revolutionized the way traders can use intermarket analysis. He shares how his own proprietary software, VantagePoint, utilizes neural network technology to forecast intermarket influences on forex price action.
Risk management is another key topic in the book. Mendelsohn underscores the importance of controlling risk through the use of stop-loss orders, proper position sizing, and diversification across different asset classes.
The book is filled with practical examples and case studies, which help readers apply the concepts discussed to real-world trading scenarios. Mendelsohn’s clear and straightforward writing style makes the book accessible to traders of all levels, from beginners to experienced professionals.
In summary, “Forex Trading using Intermarket Analysis” by Louis B. Mendelsohn offers a unique, holistic approach to forex trading. By integrating intermarket analysis, technology, and risk management, this book provides traders with a comprehensive toolkit to navigate the forex market successfully.