Product / Intermarket Analysis
No market operates in a vacuum
Intermarket analysis has appeared, because the cause-and-effect relationships that exist among the stock, bond, currency, and commodity markets are getting more interference. It's no longer enough for successful investment just to observe where correlated markets are going.
Now new quantitative methods of analysis, capable of finding hidden patterns and relationships in related market data, are necessary to identify and so profit from lucrative trading opportunities.
So what is Intermarket Analysis?
In the intuitive level it starts with the basic belief that money flows from one economic area to another. Intermarket analysis describes the impact that different global markets have upon one another.
Intermarket analysis enriches technical analysis by means of studying external factors and principles of global market mechanisms functioning. So intermarket analysis doesn't replace other technical analysis tools of processing market data, but proposes an additional dimension and objectivity to technical analysis.
How to benefit from Intermarket Anaysis?
The mood of the market players is another important aspect of Intermarket analysis. An entire set of Beacon indicators allows doing that effectively. Influence Map is a very convenient tool for determining how sector indices influence a specific security or interdependence in your portfolio. All these along with managing watch lists and conveniently provided custom scans allows you to subconsciously monitor the changes in the mood of the investors and react to them in time.
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