Now, new analytic methods are a sine qua non for profitable trading. They must be capable of identifying hidden patterns and discovering relationships in disparate data. Needed Traders need to adapt their trading strategies and methods, in order to survive and profit in this new world order. Today's limited single-market focus must yield to a broader analytic framework that can quantify complex intermarket relationships. What is needed for successful trading is a broader concept of market analysis that recognizes the nonlinear interrelatedness and interdependence of today's financial markets.
Traders can no longer focus solely on individual markets.
It is now imperative that they adopt an intermarket trading perspective and utilize analytic tools capable of assessing complex intermarket relationships. To accomplish this, traders must expand their analytic perspective to include external factors in addition to internal factors that affect a given market. It is this broader synergistic context that must become the focus of market analysis for successful trading in the 1990s. This approach utilizes various mathematical technologies, including neural networks, to quantify relationships and find hidden patterns between related financial markets. By doing so, it allows traders to capture and act upon information reflecting the market synergy that drives today's markets.