Well its very common and well known way but still many forgets how to use it, so for you people, if you want to watch the high quality video in youtube, just add &fmt=18 (it is for .mp4 version) in the url string and youtube will run the high quality video for you. The mp4 version has the highest quality on offering as far as youtube is concerned.

You can also make it &fmt=6 by adding the string in the url to see the high quality flash version of the video.

Here is a video, explaining all these formats

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