Books Forex Trading Using Intermarket Analysis: Discovering Hidden Market Relationships That Provide Early Clues for Price Direction Book by Louis B. Mendelsohn

Forex Trading Using Intermarket Analysis: Discovering Hidden Market Relationships That Provide Early Clues for Price Direction by Louis B. Mendelsohn is a practical guide that introduces forex traders to the concept of intermarket analysis. Unlike traditional analysis that focuses on a single market or relies only on past prices, this book reveals how movements in related financial markets can provide advance signals for changes in currency trends. The main premise is that financial markets are now deeply interconnected—currencies, commodities, interest rates, and equity indices all influence each other—and understanding these relationships gives traders a strategic edge.

Key Themes and Concepts

Intermarket Analysis:
Mendelsohn explains that looking only at a currency’s chart or fundamental data is often insufficient. Successful traders also examine the interconnected behavior of related markets—like how oil prices, stock indices, or interest rates can affect currency valuations.

Anticipating Price Moves:
By recognizing “hidden market relationships,” traders can sometimes forecast forex direction before it appears in price charts. For example, falling commodity prices may signal a future decline in commodity-linked currencies, or changes in US Treasury yields may presage USD trends.

Beyond Traditional Tools:
The book argues most traders rely on outdated single-market indicators, whereas intermarket analysis offers more timely and reliable clues—essential in a globalized, fast-moving market environment.

Actionable Techniques:
Mendelsohn provides clear, actionable methods for implementing intermarket analysis in daily trading—helping traders systematically incorporate data from multiple markets to improve forecasting accuracy.

Adapting to Modern Markets:
The approach is especially relevant for today’s global, highly correlated markets, where isolated analysis often leads to poor results and unnecessary risk.

Who Should Read This Book?

This book is ideal for currency traders—whether beginner or experienced—who are looking to enhance their strategy beyond single-market analysis. It’s also valuable for anyone wanting to understand how global markets interact and seeking to make more informed, data-driven trading decisions.