can you tell us about the fabulous Forest situations on Forex pairs all right because it rarely has gaps it's a 24-hour market thank you God bless you if you're not familiar with my fabulous 4 concept you need to find that on my YouTube channel and listen to that two or three or four times very powerful concept that helps you play position correctly in the market or a lot of Traders do not understand that the position of your trade is just as important as the trade itself the same way in the real estate market that the
position or the location of your house has a big impact on the value of your house you can have an incredible mansion in the ghetto in a very undesirable area and the value of that Mansion will be a lot lower than if you put that mansion in a very highly desirable area and the values would be drastically different same house same materials same square footage same Beauty different locations different value same thing in the market same beautiful pattern to play Same power same velocity same momentum but in one location it will run further in another
location it will run into trouble faster all right so you have to know how to play location or position and we use a concept that I came up with called the The Fabulous 4 to help Traders understand where to play what positions are the best to play now what pedrum is asking is but Oliver there's no end of the market and the the start of the the next Market in the Forex and so how can I formulate The Fabulous 4 it's a little different in the Forex market and there are two things two ways you
can consider the London open as the Forex markets open so London opens whatever time in your time frame London starts trading that's the open that's one way to do it and you start from there you grab your four items and draw a box around your four items starting from the London open that's option number one option number two is to consider that every time your Forex pair goes flat meaning that there's no Trend up there's no Trend down the actual pair is now just trading flat and in addition to this the the the pair the
pricing being flat it's narrow it's thi it's thin and the 20 period moving average of your item has gone flat so much so that the the Forex pair and the 20 look like they're one thing no separation that's a brand new open you start there and so whichever side your Market moves out of that thin that thin side ways like the like the pair is laying on its back the 20 is equally flat as well if you power out of that that's to the upside if you power down from that your move is to the
downside and every flat period it's like it starts a brand new cycle a brand new birth for your Forex pair and so you can choose either one of those I kind of like that flat Theory all right every flat period starts a brand new day every flat 200 and every flat price starts a brand new cycle now play out to the upside or out to the downside you don't choose you let the market choose why don't you trade us indices like the NASDAQ or the Dow Jones all right I get this question quite regularly guys
and I'll try to be brief because I have done deep dives into this why I prefer individual stocks over Trading the indices themselves now if you tell me from an from an from an from an investment point of view I actually do encourage most people to play indices right so it's very different a distinction I want to make here it's in short-term oriented trading the main reason guys I don't like trading indices is because I rely on the psychological components of trading I rely on the psychology behind a Market's moves and so for me I'm
playing not a stock I'm playing the fear and greed Cycles from Traders from players I'm playing the participants of that stock I'm not playing the stock itself and I'm reading when are the vast majority of the participants in this stock feeling fear I can look at the chart and tell when the majority of the participants are experiencing fear and are running for the hills I can look at a chart and show you that I can show you when the majority of the participants are actually experiencing more greed in what some of the crypto players call
fomo and they're stumbling across themselves to get in I can show you what that looks like on the chart I can also show you where the TR what the transitions look like so first it's greed greed greed greed and boom something happens to switch it from greed to fear and now fear takes off and runs its path to the downside but that transition that movement from greed to fear looks like something it looks the same almost every single time and if you know how to identify that Baton Pass you can play the Transitions masterfully and
that's where some of your biggest money comes when does Fear stop and greed begin again when does greed stop and fear takes over again if you can find those two moments in the market wow you're going to be a master well the indices don't work that way you see what's moving in index is not a not the players what's moving in index are the is is is it's the collection of all the items that make up the index and so let me give you an example if the SNP 100 index 100 stocks the S&P 100
if every stock in the S&P 100 was going up it would mean that the index would have to go up but what if every player was shorting the S&P index if every player is shorting the index would it go down because of what the players are doing or would it still go up because all the stocks that make up the index are going up it would still have to go up so it has nothing to do with what the players are doing I can't play The Players I can't play their greed I can't play Their
Fear because the movement of the index is more determined by a basket of other things that has nothing to do with what the majority of the participants are doing with this index and so I lose that advantage that's a big part of my trading Advantage you understand I don't know if that makes sense to you I hope it does but that's why I lean toward trading short-term oriented I trade individual stocks because I can find I can find that moment where there's a switch from Fear to Greed and I can show you one let me
show you one today let's take a look there's this move in apple here that's greed I can see it I can see it in the power of the green bars I can see it in the smallness of the red and the power and solidity of the green bars and how there's a wide space between where the green bar starts and where the green bar finishes now look at what happens here look at how look at this guys look at how you go from Green wide you see the wideness of that green and you go wide
but less wide see this one is less wide than the first one one two this one's wide as well but now we go smaller now we got a smaller green so we go from wide little less wide wide to smaller green wide to now little red to now sizable red for the first time in the entire run the Baton has been passed from Green greed to fear right there that Baton Pass foretells a sizable collapse especially given the fact that you have what I call the double space position remember I told you position is key
to knowing what to do look at the position of apple look at how far this is from its next important item the 20 and how far the 20 is is from its next important item the 200 I call this the Dual space position space one space two and when you have this dual position height and a negative event fear starts all right now greed starts right here because this Red Bar was completely this bar was completely red at one point if you take a look at this right let's take a look at this this was
a solid red bar when it was trading at the low so look at how the bars grew in size power you a brief red there then a really powerful red then another powerful red and for the first time a red started to disappear itself the bull started to eat through the redness so this red went it didn't do that here it didn't do that here it didn't do that here but it did that right there it went right back up now boom that's the start of greed again and boom that's the start of fear again
and what remember I told you location this location is the Dual space location this location is the almighty 200 period moving average and if you know how to find these baton passing moments Traders all right when you know and you're skillful at how to find these baton passing moments fear fear fear fear P to gree greed greed greed greed pass to to fear here again if you can find those baton passing moments at the right locations your game is intact that's playing the markets intelligently that's playing with a method that's playing systematically that's not just
oh well I I think it should go up from here I think so I you think what is that I think it's oversold what is that we don't want to think we want to know based on a specific carefully designed approach that's how you play the game
