Lesson 8 - Parallel and Inverse Analysis of The Spot Forex (Slideshow)

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This slide show will give you a complete overview of parallel and inverse analysis of the spot forex. These techniques are simple but less than 1% of forex traders even know about them, although it would be impossible to trade the forex without this knowledge..

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Five Major Areas of Study

Parallel and Inverse AnalysisSupport and Resistance

Trend Analysis Using Multiple Time Frames

Writing A Trading PlanEntry Management-Money

Management

Parallel and Inverse Analysis

• Less than 1% of Forex Traders Use It• You Cannot Trade The Forex Market Without It• Once you learn it you will realize that all other

systems do not and cannot work

Parallel and Inverse Analysis

• Can Be Used Two Ways• Market Analysis – Analyzing currencies by

group, i.e. USD Pairs, JPY pairs, EUR, Pairs, etc.• Entry Management – The Forex Heatmap ™ is

arranged by parallel and inverse groups.

Parallel and Inverse Analysis

• Basic Example of Market Analysis• EUR/USD rising, USD/CHF falling• Sell the USD• Opposite is also true, buy the USD• EUR/USD falling, USD/CHF falling• Sell the EUR/CHF

Parallel and Inverse Analysis

• Basic Example is Verification with two pairs• The Forex Heatmap ™ will Verify the same• Entry verification with 14 pairs

Parallel and Inverse Analysis

Parallel and Inverse Analysis

• EUR is weak• CHF is strong• Sell the EUR/CHF• USD is not involved• This technique works on 28 pairs going in two

directions, 56 possibilities every day• Successful entry analysis using 14 pairs

Parallel and Inverse Analysis

• Basic Example Number 2• NZD is Strong, JPY is weak• Buy the NZD/JPY• You verified the trade with two separate

currencies • New verify the currencies using 13 pairs

Parallel and Inverse Analysis

Parallel and Inverse Analysis

• Get some expertise• Study the free resources and examples• Then paper and demo trade• Your pip totals will be higher that all other

forex traders • More pairs equals more opportunities

Parallel and Inverse Analysis

• Review These Free Resources • Immediate impact on paper trades• Increased pips• Within 2-3 weeks your entire view of the forex

will change• No more indicators

Parallel and Inverse Analysis

• How To Use Parallel and Inverse for Market Analysis

• The Definition of a Trend• Example pair we use is the EUR/JPY but it

works on all 28 pairs• Very Simple Trend Indicators• Free Trend Indicators

Parallel and Inverse Analysis

Parallel and Inverse Analysis

• EUR/JPY drops and stalls at support Point 1• Why did it drop ??• Check all of the EUR pairs and all of the JPY

pairs over the same time period for the answer

• All of the EUR pairs dropped or all of the JPY pairs dropped, or both

• Charts do not lie

Parallel and Inverse Analysis

Parallel and Inverse Analysis

• EUR/JPY reverses up off of support and forms a new uptrend.

• What is a forex trend ??• Long series of movements with EUR strength

or JPY weakness or both that favors one direction

• Works on 28 pairs• Simple but ignored by almost all forex traders.

Parallel and Inverse Analysis

• Any trader can learn ii in 2-3 weeks• Initial paper trades will have pips• After a few weeks of paper trading your view

of the forex market will never be the same

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