However, these efforts, which identify whether this data is directly or inversely related to a specific market, still do not offer a way to quantify these relationships, or assess the simultaneous impact of multiple relationships on a given market. As it turns out, one of them, neural networks, is very well suited to implementing synergistic analysis. Neural networks can be used to synthesize technical, fundamental, and intermarket analysis into one analytic framework, capable of finding hidden patterns and complex relationships in data. The application of this technology to financial market analysis has quickly become a hot subject in the financial industry, with dozens of articles and several books written on the subject in the past few years. Amid all this hoopla, traders must keep this technology in perspective.
Neural networks are simply a mathematical tool.
It is their ability to quantify intermarket relationships and find patterns in data from related markets that allows neural networks to play an important role in implementing synergistic market analysis in today's global markets. Code Copyright 2001 Market Technologies Corporation. All Rights Reserved. VantagePoint, ProfitTaker and Market Technologies Corporation are trademarks of Market Technologies Corporation. Synergistic Market Analysis, Synergistic Analysis and Market Synergy are trademarks of Louis B. Mendelsohn.