The relationships we have considered so far are those created through the various inter-market linkages which tie the four capital markets together through the gateway of risk and return.

And now I want to tackle the thorny, and much discussed question of whether volume is even valid when trading spot forex.

And so we come to Wyckoff’s first law, the law of supply and demand.

If there is one aspect of the financial markets which exercises the authorities more than any other, it is the issue of leverage, and the reason is because it has the capacity to do infinitely more damage than any of the misleading marketing or fictitious claims you will read about on the internet.

Now let’s move on to consider this topic in a little more detail, and if we start with the congestion phase of price action, what are the tactics we can employ here.

Finally let me cover one of the bond markets I mentioned in another video podcast, namely the Eurodollar market, and for this we need to turn to the futures market.

Whilst Australia has the usual generic big number economic releases associated with any global country, there are in addition over twenty tier two releases.

Another release is the UoM (University of Michigan) consumer sentiment report, which is another of our composite economic indicators, and which ranks alongside the CB index.

And as mentioned in the extract from the report housing and housing related data is another of the key sectors, and the HPI data (House Price Index) released by the Australian bureau of statistics is well respected.

The third of the four capital markets is probably one that is very familiar, and agains is one few, if any forex traders ever consider, and that is equities.