The EASY Way To Make BIG Profits In FOREX

Forex is the easiest market in the world to trade and virtually a license to print money. And yet 98% of traders fail and fail miserably. The reason is because they don't know the best kept secret that's hiding in plain sight. If you want to make big profits in Forex with less effort, I'm going to show you exactly what to do in this video. Start giving today and you'll instantly improve your results. And stick around to the end of the video and I'll give you a free indicator to make this even easier for you. Forex is very different to normal markets. Like stocks in Forex, each currency is a separate market representing the economy of that particular country, each of which has very different economic and political situations. In total, there are 185 different currencies. The 86% of all volume is concentrated on just these eight majors, which are what retail traders are mostly interested in. And they can be combined into 28 different pair charts. So when you match the Euro against the US dollar, that's one pair, because the Euro adding to the British pound is another, and so on. And what happens on a chart obviously depends on what's happening to the individual currencies. The Euro may be going up in value and the US dollar is going sideways. In that case, the pair chart will only have a small trend because only one of the currencies is actually moving. If the Euro was going up in value and so was the US dollar, but to a smaller extent, there would still be a trend on the chart because the currencies are diverging. But this is an even smaller trend. The chart would even have an uptrend if the Euro was sideways but the US dollar was going down. And even if the Euro was actually going down, so long as the US dollar was going down more rapidly, as long as there's a slight divergence between the two currencies, there will be some movement on the chart. Whereas if both currencies were doing the same thing, that pair chart wouldn't be going anywhere. So clearly the best trend happens when the currencies are doing the opposite to each other. That is the crucial factor. In Forex, you are always buying one currency and selling the other. Regardless of which way round you do it, you are betting on two different markets and hoping one goes up and the other goes down. Now is that true? If we examine the scenarios that we've just looked at, in the first two you would have sold the US dollar, which is not going down in either. And in the second two you bought the euro, which isn't going up in either. There may be a small trend on the pair chart, but it makes no sense to trade if half of the assets involved are doing the opposite of what you need. The pair chart is not the market. We are currency traders, not pair traders. We assess the individual currencies and then match the strongest against the weakest to find the biggest trends. Now, there are two primary drivers of price movements. The first is fundamental data. A currency, for want of a better phrase, is a barometer for the state of the economy of the country that it belongs to. If a country has very high unemployment, low interest rates, high inflation, it's likely the value of the currency will be falling. Whereas a currency with low unemployment, higher interest rates and low inflation, its currency will be increasing in value. For example, low interest rates discourage investment, whereas higher interest rates attract investment. Several years ago, there was a long period when all interest rates were at or near zero. And then between February and September 2022, they started to rise. The US rate was the first to increase from 0.25 to 3.25. Next, the Euro began to increase and went from 0 to 1.25. And the Japanese Yen remained unchanged. Here's the Euro USD chart from that period. It's got a nice downtrend, but. But is that where the biggest profits were? Well, to catch that trend, you would need to sell the euro and buy the US dollar. But both currencies are getting stronger. It's not the smartest choice to sell a strengthening euro. Whereas if you bought the euro against the yen or bought the US dollar yen, you would be buying a strong currency and selling a weak one. And if we look at those charts, there is an uptrend on the euro yen and an even better one on the US dollar yen and we can calculate the values. The euro US dollar, which matched the two strengthening currencies, changed in value by 11.8%. The euro yen, the second strongest against the weakest, had a change of 13.2%. But the US dollar yen, which matched the absolute strongest against the weakest, had a 27.7% change in value and was nearly one and a half times or 140% more profitable than the Euro US dollar. This is how you make the most money trading forex. You analyze each currency and you match the strongest against the weakest. It's so simple and obvious, yet almost nobody does it. No wonder 98% fail. Now, the thing with fundamental analysis is it is only relevant in the long term. Over periods of months and years, it's of absolutely no value over the short term. Fundamentally weak currency can still trend up intraday. And an analogy that might help is that of physics. There are the laws of relativity that explain everything that happen on a large cosmic scale. And then there's quantum mechanics that explains everything at the tiny subatomic level. And they are seemingly totally separate with no interaction at all. While in trading on a large scale, the driving forces are fundamental factors. On a small scale, the driving forces are what are termed micro mechanics. And to assess these, we use order flow analysis. Even for longer time frame traders using fundamentals, order flow analysis is essential for the accuracy of entries. And the principle is to once again analyze the currencies and match strength against weakness. And here's how we do that. The eight major currencies that we're interested in can be combined into 28 different pairs. And. And to determine the value of a single currency like the Euro, we would look at the 7 Euro pairs, add and subtract the strong ones from the weak ones to give us the standalone value of the individual currency. So let's assume that the price of the EUR US dollar at 8am is 100 and the Euro New Zealand dollar is 200. An hour later, the price on both pairs has moved 10 pips. In relative terms, 10 pips is 10% of the euro US dollar starting price, but only 5% of the euro New Zealand doll. Add those two values together and the euro has gained 15%. But we need to make this calculation for all seven euro pairs. If we haven't subtract all of these together, we get a gain of 28%, which then needs to be divided by seven to give us the final value for the Euro as a single standalone currency. And the same calculations are done for every other currency. But don't worry, this is all handled by an indicator. When you extract the strength calculations like that, we would effectively end up with a line graph for each currency as its own standalone index. And then you could analyze them like any other chart to pick out a strong one and match it against a weak one. What most indicators do is take these separate lines and overlay them on top of each other. And there are loads of different versions of this available in just about any trading forum. I personally use a more advanced strength indicator and you can download this for free in a link in the description. The problem with regular strength indicators is the difficulty in picking an entry. Most people wait for the lines to cross each other, but that's very often late in the move or it misses some moves altogether. If we imagine this is the price chart, that's the only entry signal that you got. But there were many earlier signals when the currencies were diverging or converging. When the strong currency begins to weaken and the weak currency begins to strengthen, that's the real key to exploiting this. Strength versus weakness is too simplistic. It's more accurate to say when two currencies are moving in opposite directions, getting stronger and getting weakness. And that's what this indicator shows. It's a histogram with green clearly showing when the two currencies are moving in opposite directions for an uptrend on the chart and red for when they are moving in opposite directions for a downtrend on the chart. And remember, this is not looking at the peer chart that you attach this to. It's looking at the individual currencies for that chart. Which means in many ways it's a leading indicator helping you avoid false moves and getting you in early to high probability moves. Matching individual currency strength against weakness is the real secret to making the biggest profits from Forex. You must assess the individual currencies and then match strength against weakness. Because remember, you are always buying one currency and selling another. So it makes sense to buy the one that is likely to go up the most and sell the one that is likely to fall the most. Start applying this to your trade trading and watch your results improve immediately. Now, I really hope this is being helpful and if you have found this interesting, please like the video, leave a comment and subscribe to the channel that will really support what I do. And I can continue creating lessons like this for free of the whole series of new videos that will guide you from beginner to pro trader in next to no time. So I'll see you next time.