Trend Forecasting with Intermarket Analysis: Predicting Global Markets with Technical Analysis

In this groundbreaking new edition, Mendelsohn gives you the weapon to conquer the limitations of traditional technical trading intermarket analysis.

To compete in today′s rapidly changing economy, you need a method that can identify reoccurring patterns within individual financial markets and between related global markets. You need tools that lead, not lag. Step by step, Mendelsohn shows how combining technical, fundamental, and intermarket analysis into one powerful framework can give you an early edge to accurately forecast trends. Inside, you′ll discover:

Precise trading strategies that can be used by both day traders and position traders The limitations of traditional technical analysis methods and how to overcome them How neural network computational modeling can create leading, not lagging, technical indicators for more accurate forecasting Innovative, quantitative trend forecasting indicators at the cutting edge of market analysis

This book includes an introduction to VantagePoint Software, which makes Mendelsohn′s "new economy" trading methods work simply and effectively. This software applies the pattern–recognition capabilities of advanced neural networks to analyze intermarket data on literally thousands of global financial markets each day.

Foreword Jim Wyckoff IX

Preface XIII

Introduction XV

Chapter 1 Trading in a Global Economy 1

Chapter 2 Technical Analysis for Today′s Markets 19

Chapter 3 Chart Patterns: Building Blocks of Technical Analysis 33

Chapter 4 Technical Indicators: Enhancing Price Patterns 57

Chapter 5 Using Intermarket Analysis to Gain an Edge 75

Chapter 6 Mining Intermarket Data with Neural Networks 91

Chapter 7 Using Intermarket Data for Predictive Indicators 103

Chapter 8 Applying Predictive Indicators to Trading Strategies 139

Chapter 9 The Synergistic Trader 167

Suggested Reading 173

Important Internet Sites 175

About the Author and Market Technologies, LLC 187

Louis B. Mendelsohn is a leading pioneer in developing trading software for personal computers. He was the first to introduce strategy back–testing in 1983. Several years later he introduced the first intermarket analysis software as the global economy was first emerging. In 1991 he released VantagePoint Software which applies neural network pattern recognition capabilities to global market data and makes highly accurate, short–term market forecasts using predictive technical indicators.