The Most Profitable Forex Trading Strategy | Forex fundamental Analysis - YouTube

Channel: Kleveland

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