traders I'm about to show You the most profitable trading Strategy That's ever Existed in Forex What's really in Trouble Welcome back Guys to another high impact the best place to learn Fundamental Analysis and use that data to Give You Guys an Edge in Today's Market Is your Boy Cleveland We Just came off of Talking about The balance Sheet last Week so if you didn't See last week i get back video It's down in the description Below okay Yellen Is gonna do The tapering in october all right We were Expecting to start to do the tapering in 2017 but We Didn't Know What's gonna be next month so that Gave us a Lot of us strength And We Caught That Us sell side move on The euro/usd you guys can Check out the last Week's Money Market Breakdown to see our Forecast and See What Happened all right so Guys This is My masterpiece When it comes to a High Impact video our Yeah i know this is our only our Third one but i think this is going to be the best of The Best okay Economic data and the Fundamental data that You Guys are seeing being spit Out on Bloomberg Being spit on on cnBc over at Forex Factory Over At Seeking alpha all Over a Trading Economics It's Hard to interpret all of It all right it's really hard to Conceptualize How it all fits so i've Been Thinking and i've Been pondering Over a Metaphor that can Help me conceptualize Economic data to like Maybe Just One simple metaphor one simple Variable and i can Just have all These Other independent Variables That Maybe Affect How well the economy is performing or not and i got it for you okay and discovering This and conceptualizing It in This Way Showed me Exactly How we Make Money at trade i already Knew how we made Money I'm trading via Economic, Divergence But I'm gonna show you Exactly how that economic divergence the best trading strategy That There is in forex it'S a Little Bit more Long-Term Alright It Requires a Lot more Interpretation of These Markets and a Lot more Of an Understanding of These Markets But When you know it and when you can Align it with The technical Information Alright Guys It Gives you an Amazing Amazing Edge Alright This is how the top guys in the industry are Assessing Markets in It You are not Assessing Markets in This capacity again You are not Putting Yourself in a Situation That Is gonna Review the profits that You want okay so sum it all up let's pull over into the blackboard i'm gonna show you guys Exactly How these Major Players are making Money in This Market so you got to make sure you liked and subscribe So you can Get Involved in these moves and interpret This data as soon as possible all right so you have that Edge and Again as Always Folks Like The video for your boy ok Let's pull them to the blackboard So i'm not sure how many accountants rationalize The economy has a Vehicle But That's Exactly What i'm going to do ok Only difference is i'm gonna Help You guys Understand It in Relation to other Vehicles ok in other economies Because That's where our Edge is ok the edge is how is this vehicle Functioning Relative to how this vehicle is functioning We Need to know the Variables inside each vehicle to understand its functioning relative to another all right I know That's a Lot but Check me out you can Drop a car over here it's not going to be pretty guys so Bear With me and see it's already Started Sorry about That Alright so imagine this to be your economy ok and all the Variables That Exist Within the economy i'm gonna Try to help You rationalize that in the Context Of a Vehicle ok and That's Just gonna Help You really Understand How for Wrecks Works and Why you can Make Money for x and Why This is the most probable Way to make Money in Fx so the Variables that we're gonna be looking for are gonna include the driver of the vehicle All right We Need to talk about the gas We Need to talk about the brakes and We Also Need to talk about the speed of the car Ok, so the driver for us folks is the central bank okay Now Why is the central bank Let me elaborate the gas is productivity Now this is where we're gonna be spending most of our time today all right Now the brakes are the interest rates we'll Just rationalize that it's ir Okay and The Speed of the car is going to be inflation remember in the last High-Impact video we Talked about how inflation We'll talk about that As Inf all right so these are the key Variables to our Economy and unlike a vehicle and economy Guys It wants to exist Forever ok there really isn't a Destination All right so you're always gonna have? Productivity happening Which means you're Always gonna have the vehicle Going? Alright But Just Like i mentioned again You won't have a vehicle Moving at All if there is no productivity so That's why gas represents Productivity for Us ok and based off the Amount of Productivity The interesting Thing That happens you know unlike a vehicle When there's more productivity happening in the economy Usually in an increase in speed Because the economy needs to burn off That Extra Productivity all Right and What happens we get an increase in speed in terms of economic Growth You can Get ballooning to start to happen all right We Saw That in 2008 all right Well We Look back on Every single time We Make One of These videos all right It's a Great Place To get a Lot of Examples and to Learn From ok and so When We See increase in speed in terms of the economy economic Growth What you'll see happening is is an increase in inflation all right and You don't want To see that Much of an increase in Inflation You want to see that Much capital Moving Around in the Money Supply Because again You may Not Really have any true value there they may not be any true Productivity Happening in Those areas so what Will Happen the driver the central Bank Will put on the brakes? All right Those Aren't Applying interest rates and Those interest Rates act as Governors all Right What What Happen is as this economy and as This vehicle Is Moving Along As an Increases in Speed the central banker inside Notice is that Whole process happening and he Says Holy crap ok? he starts Applying the brakes and a Lot of Times as You guys can Know in 2008 Here's a Chart 2008 What started happening Economic Growth Was Monstrously Just pushing to the upside Can You Guys See how those interest Rates were increasing but Still we had a collapse habit ok They Should Have Implemented Measures? Before The Panel Was Really Pushed ok before the speed Really Started Increasing They Should Have Implemented Measures Here in the productivity sector in the economic Sector via Reform? Ok a Lot of Times People Say a Free-Market is you know the perfect capitalistic scenario Nepean Government Shouldn't Be Involved in any Capacity But You Guys gotta rationalized we Have These Guys at the top that are making all This Money They're gonna start Doing Things ok You Guys got to go back To the lies in hiding back video to really Understand This? There's gonna Start Implementing different Ways of Making Money in the economy that may not be too beneficial for the economy Aka Mortgage-backed Securities all right but if the government intervened in that process to Stop The Banks from you know being together and allow them to get Too Big to fail then maybe we Could Avoided The 2008 collapse all right so government intervention central Bank Intervention Can Slow The economy down if They slow the economy down they're usually going to do that By slowing Productivity They're gonna Slow Productivity By Raising Rates okay By Making Money Less accessible all Right But What we're gonna do right Now iS we're gonna go over it's a gas alright i want To show You Guys the breakdown of productivity Because it's pretty Simple uh you know up to right Now but there are a Lot of different Variables Within Productivity That Can Help us pinpoint Exactly Economic Growth The Type of Egg the type of That Growth in terms of Productivity Okay there could be a lot of productivity happening Guys but it's not all beneficial all right so let's go into uh you know all The Variables of productivity and i hope You rationalize again The Type of gas i'm going in the vehicle and That's Good or Better Alright so some of The aspects that i mentioned earlier of The Economy When i was relating It back to the vehicle had Variables Within them as well right so Inflation for Example We Mentioned Inflation Being Speed there are different types of Inflation okay so i talked about That Too High-Impact videos Ago Again Watch That After This video if you Haven't Seen It alright and When It comes to productivity The Gas in the economy there are four there are three other Variables that i look for When it comes to productivity and how it Relates to how the overall Economy Is performing so the first Variable of productivity that i want you guys to understand is employment okay a Lot of Folks look At That Non-farm Payroll That Comes Out At the Beginning of Every month Because it's it's Extremely important how many Jobs have Been Added into the economy That's gonna Help us understand The Amount of productivity That's gonna be happening in the economy Okay and Remember Depending on the amount of productivity we Have Depends on how much gas ahright is being Pushed into the economy and That's gonna dis pin on the amount of speed that the economy is Actually gonna increase or decrease okay and Another important factor of employment are the types of Jobs Being Added so That's something that we oftentimes i'll Talk about I'm Thinking about Doing a Non-Farm Payroll Next Week Because we Have Known for your coming out next week and i'll go over that and Help You Guys irrational Eyes Employment in that Aspect of Things okay so very important indicators there so after that we Have Economic Growth okay Just Blatantly economic Growth and we Have trades so yeah Things like? Ppi okay purchaser purchasing price Index you have Things like pmi okay producers managers Index Yeah? Imports alright And Exports okay and if you Have imports and Exports you also gonna have trade balance Alright How Much How much are We Exporting versus importing and What'S the current standing of That okay in an economic Expansion we want to be taking on a Little Bit more Imports Than Exports Alright Because If we're Just Still producing a Lot in the economy and pushing that out Of the economy That we're gonna have an increase in a and we're gonna increase again and Inflation okay iF we're in a Recession? Well We Want a Lot of Exports okay we want to be producing a lot Within the economy and so That Way well Again we're Increasing Productivity Within The economy okay so Again it's Varying degree a Lot of Times People Say all The economy's functioning on a trade deficit well if the economy is Expanding Is Extremely Fast You might want to be functioning on the trade deficit all right so That'S something That's Very important there so a Third One Is geopolitical events okay so things that Things like You Know Marie Lepen Versus Macomb back in April Alright Again If she won the Election back then It Was a Potential That You Would have the European you the france leaving The European union That had Heavy implications on the currency That Would have also Had Heavy? Implications on the productivity of the economy okay yeah situations like Brexit alright We Saw investing Go down after Brexit okay investing into the uk okay and so, since investing went down you had a decrease in productivity Alright Even Though They did Pretty well in their latest gDP figure you Saw How greg's that did have? Implications of on how Productivity Was functioning economy and That Again Weighed down the Currency and a Few Things i didn't Mention Inside geo were Actually Things Like War right so north Korea You Guys have Seen That had Bad has had implications on our Currency Prices Had implications on gold Prices Again That affects the economy the push and pull there you also Have Natural Disasters Natural Disasters Have Definitely Massive implications short-Term Usually on Economies Recently we've Seen that we Had a Lot of different weather patterns having all These Hurricanes puerto rico Right Now has zero okay zero Electricity Running It Within The economy at The moment you know again those have have any Implications on Economies there so last but not least we Have commodity prices Commodity Prices As you Guys Know again definitely Have Heavy Implications When you're Dealing with The commodity based Currency a Lot of Times you Hear that Jargon There People will relate The Prices of gold Prices of Oil we Do That Inside of our community all The time and compare and contrast That and Say okay Guys we're having a huge uptick in oil prices Less Listeners Are look to start Buying the canadian dollar for Example right so if i've Showed you Guys a Chart back When gas was Fairly Cheap You would have Seen That the canadian dollar Was Actually Doing Fairly Poorly okay But Then once gas started coming Back Around and gas prices started to increase you'll see the canadian dollar Again start to increase in Terms of Its uh economic Divergence you Know us versus the canadian dollar alright Why is that the case well That's because literally Twenty five Percent okay a quarter of All Exports That Are happening Within Canada are in Their Natural Resources okay in their Mineral Deposits Um that Being Oil okay so guys Just when you look at the economic data coming Out on for x factor okay on trading Economics Look for It in Terms of Productivity That is Usually Where most of the economic data Is functioning all right Certain Times you See things regarding interest Rates Usually again You might Be Able to peg interest Rates to certain Things involving cpi but at the end of The day Cpi has a Lot to do with? Economic Growth okay That's Number two for us all right We have the pmi we have peak you can have cpi here as well? How much are People Actually spending on Certain Goods in the economy that Deals With Productivity all right and That's What You can Section off different economic Releases to help You guys to rationalize Exactly What you're looking for okay So that is Highly important one more Thing i want to talk about to you Guys before we in this segment the traders this is The Most important Part of The entire spiel Here okay Economic divergence Remember Everything That i Just hope you Guys are a Tional eyes alright Depending on the speed of the economy well Depending on the speeding economy you're gonna get a Certain interest rate okay but The Thing about Today's economy is it's a Global economy all right We do Exports Into China China has Exports into the United States Okay we Have lots of different Um you know geo and National conglomerates you Know functioning in Every single different Country okay Certain Countries Certain Companies Have footprints in Over a Hundreds you know different countries we're all Interconnected Alright back in the day you're gonna have One economy Fail and I'm talking about potentially you know baby back into the you know Early Nineteenth 1900s you Know maybe could have an economy Fail and you know that you as a functioning Company not Do so Bad but you know After We Started Manufacturing Cars That's Probably Everything Started and Then Manufacturing software and computers and Then Clothes and everything Else and then Food after we became so Interconnected If One come one Country Sneezes okay They all see so i want to show you guys a picture here these are different economies you can rationalize this as The us you can rationalize this is uh maybe The Euro or Maybe Just the uk you can rationalize this is the australia maybe The new Zealand dollar They all are Moving in the same Direction They're all wanting economic Growth okay but iF One country Has a Hiccup Imagine That They're all tethered Together okay when the u.
s Failed in Terms of its banking System in 2008 Imagine This these These Cars are Moving Along Alright They're all pushing Along They're all pushing Along and then boom you have this huge Roadblock? Here in the us well then What happens you have all These countries start to smush Together so the divergence That originally Existed? Kind of Evaporates They all start Failing a Bit okay but once the u.
s started to pick Up This Right Here Guys This is your edge and i'm trying to hope you guys are allies that this is the Moneymaker This in Between Right Here Because if you have One economy Going Backwards and you have One economy Going Forwards then The? The occurrence eh the currency pair is going to be changing in value Immensely all right you're gonna have? The Euro Going in This Direction Okay for Example You'll have the us dollar going in this Direction for Example well as The euro is appreciating and The us dollar is failing in Many occasions Wasn't Happen folks you're gonna have this parabolic move That'S what we've Seen Happen this year okay but the us can only fail so much Until It affects The Europe You Guys Get What i'm Saying so maybe if you get a situation Where you know the new Zealand can Fail Cyprus for Example spain for Example Those economies Really Haven't Rebounded so well since 2008 well you have over here the euro yeah but we Hear the us dollar? Again Those economies are pushing Forward so you see this Tethering Right Here imagine it to be a rubber band you see these getting pulled Backwards as these economies are moving Forward and Eventually You Usually can See these economists are pushing for Because There's investment in these economies Here okay there are companies From These Entities Here from These countries Here that are inside of these economies there right so Eventually You Will have the laggards pull up but It may Take some time and in that time you can trade That Economic divergence ok so there's Just so many scenarios where as the us for Example in the u.
Cad this Year Alone we came from i think the dollar Thirty Six's and we From one as low as the dollar 22's okay that Is a prime Example of the canadian dollar The Number one G7 Currency in the entire world okay versus the us dollar a Very Very Dismal Situation i can Show you Guys the dax right Here the us dollar compared to all the Other Currency Pairs have Been Doing worse? And worse and worse if you guys can Understand How these economies are standing Here? okay all these different vehicles That are driving if You can Understand Their standing relative to another economy that is the edge the Economic divergence is how you're making your Money You're trading the split between this economy moving slowly and This economy Doing well You're putting your capital and betting That this economy is gonna do well relative to this one and as that comes to Fruition You're getting paid in between there okay so economic diverges Folks Is how all the central Bankers and how all The Major Market Participants Are Actually Trading all Right They're not Using Technical Analysis Technical Analysis you Know only Gives you so much of an edge technical Analysis for Myself Is more or less precision It Is a Necessity for sure But Understanding The economy As a Whole in the split and the moving between those economies Expanding and Contrasting That Each Other Is where you find the biggest edge okay so if you can conceptualize This here in the long Run and Build a Model Around This then you will be Able to make Money okay it's Just about getting in you know during those in those Weekly Scenarios okay in Those Intraday scenarios Where That Divergence is happening Very Very Incrementally There's a Lot of noise you know in between that process all right There's a Lot of noise on the intraday Chart There's Even a Lot of noise on the Weekly Chart sometimes but in the long run if you know an economy is performing and you Know another economy is suffering Eventually You Will Get That split here and then that is where you make your Money on the bet that that economy is gonna fail Or on the bet that this economy Is gonna start Picking up its pace okay so guys economic divergence is the way that the Major Institutions are Making Their Money and if You can rationalize economic divergence and understand all The different Variables That Allow economy to do well or allow an Economy to do bad then you can Make Money trading in that Capacity – okay so guys you need Any more Help With This Head Over and Get Inside of the top trade community It is our trading style Other Than that folks Like and subscribe give me some more questions okay give me some feedback if you guys Need to help Conceptualising You Know this process right Here but that is the edge okay that is the edge and that is where you're gonna Make most your Money all right so Guys Your profit Always my motor exciting to keep Cranking Out anytime you Impact videos alright i'll See you guys Next Week peace.