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 getting 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 for 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 the Euro adds 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 on 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 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 it 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 dings the weakest to find the biggest Trends now there are two primary drivers or 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 in employment low interest rates High inflation it's likely the value of the currency will be falling whereas a currency with lower 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 US dollar chart for that period it's got a nice downtrend 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 abute strongest against the weakest had a 27.
7% change in value and was nearly 1 and a half times or 140% more profitable than the EUR 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 Inay and an analogy that might help is that of physics there are the laws of Relativity that explain everything that happened 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 turned micro mechanics and to assess these we use orderflow analysis even for longer time frame Traders using fundamentals orderflow 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 to determine the value value of a single currency like the Euro we would look at the seven 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 Euro US dollar at 8 a. m.
