Intermarket Technical Analysis Trading Strategy.pdf

Synopsis E-book: Intermarket Technical Analysis Trading Strategy

One of the most striking lessons of the 1980s is that all markets are interrelated – financial and nonfinancial, domestic and international. The U.S. stock market doesn’t trade in a vacuum; it is heavily influenced by the bond market. Bond prices are very much affected by the direction of commodity markets, which in turn depend on the trend of the U.S. dollar. Overseas markets are also impacted by and in turn have an impact on the U.S. markets. Events of the past decade have made it clear that markets don’t move in isolation. As a result, the concept of technical analysis is now evolving to take these intermarket relationships into consideration. Intermarket technical analysis refers to the application of technical analysis to these intermarket linkages.