TECHNICAL ANALYSIS DOES NOT WORK!.. (Here Is The Missing Piece To The Puzzle))

Technical

analysis

alone will not make you a profitable trader. You could know

technical

analysis

like the back of your hand. That is new. It's a joke. You might know that

technical

analysis is like the back of your hand. Still, he would not be a profitable trader because he is a very profitable trader. small

piece

of a very big

puzzle

, so what are the other

piece

s you need to create a successful trading career outside of simple technical analysis? We'll go over that in today's video, so if you're new

here

, go ahead and click. that subscribe button below the video on the right side click the like button follow us on social media and see you in just a second let's get back to the topic of why technical analysis is not enough because technical analysis alone means nothing without consistency consistency is a set of rules that you trade based on you can know technical analysis have a deep level of understanding of how charts move a deep level of what trend the structure is each candlestick pattern that has been created may be at the front of your mind, but you will not be profitable unless you trade consistently, based on a set of rules, trading with technical analysis and without consistency, it is like having a nail and not a hammer, it will not be very useful to have that nail if I don't have the hammer to help you nail it, so without consistency you will lose trades, that's why technical analysis alone is not enough, imagine this, this will be a semi-obscure metaphor, but it is the first thing that appears In my head, imagine that you are going to have to have a kidney transplant, a terrible situation for anyone, but imagine that you have the option to choose between the doctors who are going to perform this transplant surgery.

Option 8 is a doctor and he performs the surgery consistently. Inconsistently, let me explain that he uses different tools every time, sometimes he uses anesthesia, sometimes he

does

n't, sometimes he uses a different process to remove the kidney than other times and he has a survival rate of about 55%, that's the option for the doctor. Option B to remove your kidney is a doctor who performs the surgery extremely consistently every time, uses the exact same tools and process every time, and has a very good survival rate. Which of those two doctors do you want me to do? transplant surgery if that was something that had to be done of course it would be option B.

Trading is exactly the same way you need to trade consistently using the same tools and the same process every time before you start. With the actual technical analysis that we are going to do, I will show you some of the trades that we made this week. In fact, I'm going to show you the last five trades that I made and show you a systematic process that I used. to make those trades, they will help you better understand creating a rules-based system after learning and mastering technical analysis, that is what will put you on the path to successful trading, not just knowing that technical analysis is successful Excuse me, but when I started trading personally.

She tells you a little story about how consistency literally changed my life every time I started trading, of course I was trading on a daily trading time frame. I was trading based on what other people were saying on a forum or some type of signals service I participated in and I was trading extremely inconsistently, sometimes trying to trade on my own based on a number of different candle patterns. or a number of different technical analysis setups like support or resistance and really what I was trading based on is the The last strategy I watched on YouTube and I'm sure you can probably relate to is you see something, a shiny new object. , like a new strategy, and you end up trading based on that strategy.

Sometimes you lose some trades and change your strategy. Again, that's a big problem that I had at the beginning of my career, but once I mastered what I'm going to show you in this video and started trading with a systematic approach, a rules-based approach, my trading completely changed and that was It was the first year I made a profit at the end of the year, so I'm going to show you how to do it in this video. First, let's take a look at the last five trades I have made in the market. Let's do it right.

Now, first of all with the proof factor, let me demonstrate that this is a trade that actually took place and instead of going to my broker's account and showing you the value of that, which is something I don't want to do, I'm going to go to our email. email analysis which was owned by 1118. I sent this email to all the traders involved in the EAP training program and as you can see it was a short trade in Canada and Switzerland which I will place on the left side of your screen. It could be you. You're right, I really don't know.

I'll put it on the screen somew

here

so you can see the analysis of the email, see the entry and exit points that it had, so as you can see, we ended up winning, this trait ended up pushing. In fact, we almost hit our stop loss, but we didn't get there and then we pushed down and we hit our targets today, in fact, and what I'm going to do is explain to you the analysis behind this trade, it wasn't just a technical analysis. As we discussed earlier in the video, simply having technical analysis without consistency means nothing to your trading, knowing that technical analysis

does

not make you a successful trader, consistently placing trades according to a set of rules is what makes you a successful trader, those rules, although those rules should give you an edge over the market or an advantage over the market and I'm going to discuss some of the rules that we use to engage in this trading or the rules that I use to engage in this trade right now, for me specifically looking for reversals, which is what this trade was based on, what I look for with a reversal, is a market that is making new lows, so if we have a market that, like this Allsey pound, Sorry Canada, Switzerland, I was talking about a different rate than this. canada swiss went from this uptrend scenario to creating new lows here we broke out we've broken below a bunch of these lows we're not in a downtrend yet we haven't necessarily reversed yet why haven't we reversed it? because we haven't created a one, two, three, one, two, three move, show me that we are in a reversal, so in this case I knew that we were in what I call a bearish rotation, a possible reversal, but not necessarily We were in the full reversal yet so I had to wait and be patient, another big part of trading is patience for this market to go up and then down breaking below two, so this was our move one, two, three, super simple right let's go over it again waiting for the market to push down push up and then pull back down we are literally counting numbers this is like grade school all over again one two three so we have this one two three move a reversal scenario that I love trading and this is the part that We're not just looking at technical analysis, right?

I didn't just say we have technical analysis here, we have support and resistance, no I have rules, this is the process of creating a system that is based on rules or a strategy that is based on rules that gives you an advantage over the market, like this that I know my rules state that I need a move one, two, three for a reversal, which are the beginning stages of a system, so I have my move one, two, three, once I have that move one, two, three , I know very well The likely place for this market to continue trending after a reversal like this is the previous point of the structure that was broken, which was here, we have highlighted in black, which was the last level that was broken as support of structure that could now become resistance especially in reversal scenarios now some things you can do to further increase the consistency of this and possibly profit potential is to add something like a moving average so now what could say to create rules around this situation, not just Let's say I know technical analysis, but to create rules around it to have a systematic approach, a rules-based approach is to say that I am waiting for the market to reverse after being above the 200-day period, in this case the moving average.

I will wait for the market to break below the 200 period moving average. I will create my reversal setup one, two, three, at that point I look for trading opportunities in the previous structure, support or resistance that was broken. This case is bearish so it is support that was broken and that is where I would look for potential trading opportunities. Do you now see more clearly the difference between technical analysis and having a rules-based trading approach? At this point, you have a rules-based trading approach. You can take this and to see for yourself if it actually creates an advantage over the market, you have to go out and test it, go out and test the scenario over and over again and see how many times it creates a successful trading opportunity, but we're not done yet, These are called conditions.

I'm not going to write the conditions, but I will put C to help you condition after condition, we will need a reason to enter the market, so the next thing is to have an entry reason at this level, what will be your entry reason? you can have an entry reason that is like a price action pattern, double top head and shoulders patterns, you can have an entry reason that is just a candlestick pattern, like shooting stars in this case or a hammer candle in the case of a bullish movement and, of course, me. I'm the best drawing person you've ever seen, that's sarcasm.

I'm terrible at drawing, especially with a mouse, so don't hate my drawings, but in this case you can see the market went back to that level and we ended up with an entry in a lower top frame in the EAP training program which you can see here, We ended up with an entry that we got on a lower time frame and it ended up being a profitable trade, the systematic approach benefited our trading not just in the fact that we consistently placed trades the same way or that I consistently placed trades the same way . EAP members tend to do the same thing, but also in the fact that he won, it was a winning trade, well, that never happened at all, but if you have a consistent trade. approach that gives you an edge over the market, you always come out a winner, so that was the Swiss trade with Canada, which is a way of approaching the market with a rules-based system rather than just using technical analysis and calling yourself himself a technical operator.

You need rules, you need consistency and that's how you create it, so let's go ahead and take a look at some other trades we had throughout the week. We will go down now that we had the short Australian yen trade, which also put on your charts, the short Australian yen trade is right here, this trade ended up pushing down and luckily for me I saw this trade when we were one pip away from reaching the targets here at this level and lowered my profits to pips. I think I was far from the actual target even though we didn't hit the targets and otherwise if I hadn't seen this right at the targets I would have been stopped from breaking even as close as we got to the targets but look at the tie , I finished. winning the trade and the trade was based on a very similar situation, let's take a look at it, so in this case we are looking at a market that has been in an uptrend just above the 200 day moving average.

This is, I don't know. I necessarily use this exact system or format for my trading using the 200 period moving average and all these reversal scenarios. I have a certain system that I use that is in the EAP training program that I use on a daily basis, but this is the exact same approach that I use. was dedicated to creating that system, if you are not in a position to acquire trading education, you can do it yourself. It may take you a little longer to create the system yourself, but this is the process you'll need to follow to do it.

In this case we have an uptrend above the 200 period moving average. We have a market pushing down below the 200 period moving average and returning to it after the pullback to a 200 period moving average that aligns with previous structural support. and the resistance you see here, this is just another situation where I'm adding rules. I'm literally creating rules that you can take and write these rules and test them on historical data to see if they produce an edge in the market, if so. not only does it have a technical analysis approach, but now it also has a rules-based trading approach, so a rule could break below the 200-day/200-period moving average when we get back to that 200-period moving average, excuse me.

If that is an area of ​​resistance and support looking aheadleft, so it's an area where I look for trading opportunities, then you create your entry and then you test it and with the historical data you will see that the process is still the same, so it was a winning trade. I had that too and now we're going to move on to the next email analysis that we had. I'll take a look at it and explain the analysis behind that operation. It was in the euro. New Zealand. I'll put a screenshot. on one of these sides I'm not really sure which side will be on this camera it confuses me because sometimes it's on the right, on my right, sometimes it's on my left, I don't even know, so the next one was just euro New Zeeland.

We had this trade that ended up being just a regular trend continuation trade in terms of technical analysis before technical analysis based on trading rules. In fact, we have our movement one, two, three, we have our previous level of structure facing left and here and we can make exchanges in that area based on certain reasons of entry again that are taught in the AP training program, so that's what we did here and that's what we traded winning, we're actually still involved, we're trying to get some second goals out of this. I would love to see this market go down here this will be the area where I look for second targets is this next support level here and that is the next thing I am looking for in the euro New Zealand in this specific trade we have our trend continuation level and we end up going down to a smaller time period, but you don't necessarily have to, as I said before, your trading strategy, your rules based system can be extremely simple, so simple in fact that you could have traded based on the shooting star candle.

If it's something that you've proven to be profitable and you've decided to use it in your own trading, don't go out and start trading shooting stars and hammers and in fact, let's go over this just for a second, just a little curve ball from the video we're on. making shooting stars and hammer candles again incredible drawings right now. I know our candle patterns used by a variety of different traders who do technical analysis in order to trade, but do you think that if you go around the markets and test every hammer candle, every candle in the shooting star camp, you will have an advantage over the market according to my tests, the answer is yes, but it is very slight, we are talking between 54 and 60 percent of the time, depending on The 60 currency pair is the best currency pair out there for trading these types of candle patterns between 54, sometimes as low as 51% accuracy, is what these candle patterns are if you just trade them on their own, but the point of using these candle patterns is not to trade them on their own, but other than that, it's to have consistency in your trading, it's consistently, you trade when you see this candle, it goes well, I enter a trade and now you can take that information and you can retest it. and you can say that you only enter shooting star candles that are in the previous support.

Things of that nature add consistency and give you that slight advantage, plus you are adding conditions that give you an even bigger advantage over the market and that is the process of creating a trading system, now let's move on and move on to our next email analysis. email to be made, let me see here, from the 19th, we had a euro-dollar email analysis that was a target winner and guys, I actually just opened. a pre-Black Friday offer for email analytics program, if you are interested in receiving email analytics like this three to five times a week and learning the exact strategy based on the rules of the system I use in my personal trading , be sure to click the link in the description to take advantage of this cell phone ahead of Black Friday.

I'm only letting in about twenty-five people for the pre-Black Friday sale, so you'll get it for exactly the same price. We will give a big discount. Black Friday, this is just a prequel to that, click the link in the description labeled EAP pre Black Friday sale to take advantage of that and become one of the twenty-five new members, if not totally cool, we'll go back to the euro. dollar trade that is on your screen again on the right or on the left, I'm not too sure but it should be on the screen, in this case we had a down trade on an hourly time frame and I'm going to be honest, we took this trade based on a double top, we have a double top right here, okay, we have this double top, let me grab my pin right here and we had a good reason to enter the second top on a lower time frame, but essentially this was based on a double top, so you have a double top, but what made this double top more accurate again, similar to shooting star candles or hammer candles, if you take and test every double top that you see and every double bottom you see, you will have a losing strategy if you trade each of them. with them you will lose money, but if you trade the test again, don't go out and trade this.

I am not a financial advisor, in no way do I give you advice on what to do with your money, but if you take it and try this every time. double tops or double bottoms happen in the market, you will lose money doing them, but if you take them and test them in specific areas of the market where you have created rules, such as our reversal areas or our trend continuation areas looking to the left, here we have a double top in a resistance and support area. I almost said a report combining resistance and support, which essentially I guess you could say this mark is doing it, so it's not really a bad thing, but combining the double top scenario with this support and resistance level. that has been proven several times is what gave us an advantage and ended up making this a positive trait of winning a trade, as you can see we had a great week so far winning four of the last trades we had or it could be three, I can't.

Really remember, let's go back, no, that was four and four, the last trade we'll look at was in the pound. Ozzy, this is our latest email analysis operation, which again I'll put a screenshot of next to the graph now and like you. I can see that this operation was actually sent earlier today, it's like 4am. I get up very early to look at charts so I can trade the system that is in the EAP training program so I can trade the system that I trade. I will wake up every four hours to do it so I got up very early for this trade, I saw a good setup on this pair and I went ahead and took advantage of the reason because we are essentially in an uptrend for sure and if you look at a daily chart.

Something I love about this operation. I'm going to give you a little extra data here on a daily chart. We had this amazing soft breakout of this flag pattern. Once we broke out of this flag pattern, I started looking for long opportunities. So another rules-based way to look at the market instead of saying "I only know technical analysis" is to say: "Okay, after the breakout of specific patterns on a daily chart, I can go to lower time frames and look for patterns of situations and inputs in that specific direction." So in this case, we look for long trades after the breakout of a flag pattern.

We move down to a smaller time frame after the breakout of this flag pattern. We had a couple of opportunities to get involved and ended up getting involved again in a previous operation. support level that was also a resistance level looking to the left several times we ended up getting involved based on that, as you can probably see at this point, a lot of my rules and a lot of the systematic approach that I use to make trades like revolutions. around structure and trend, which I think is important for any technical trader, you have to master those two and then create rules to be able to trade based on the next step is to create entries to create that complete system, so what we are going to do do talk now is one of the most important steps that is almost never talked about discipline and risk management these traits I am talking about only because I had five winning trades this week and five winning trades came through the email analysis program , that doesn't mean we win all the time.

I'll open up the actual email analytics program spreadsheet and in it you'll see that we've won about 59 percent of the time so far in 2019, that's a great winning percentage for us most of the time. It's closer to 55, so we ended up making a slightly higher winning percentage this year, but that means that 40 out of every hundred trades I make are losing trades. What you see here is the spreadsheet of every email analysis we've sent throughout the year. year of 2019 we have an average risk reward of 1.16 a win rate of 59 percent we have gained about 72% we have had a drawdown of 19% what does that mean?

This is where you really need to focus is on the drawdown you want. To lose the least amount of money possible you need to make sure you don't lose your account, so to do that you need to adjust your risk management plan, your risk per position, losing 40 out of every hundred operations like this, do you think? I could lose six or seven in a row, which I did this year. I did it in 2019 and I have a 10% risk if you risk 10 percent of your total account balance and lose seven in a row. You have just subtracted seventy percent from your total account balance.

Do you know how difficult it will be to get it back? For this reason, it is much better for any trader, including me, to risk one two on the maximum percentage of their account. I'm not suggesting you do it. You may want to risk much less or much more depending on your risk tolerance. It's completely up to you, you make your own decision, don't take this as financial advice, but if you are risking 10 percent, 5% of your account on trading, even with the precision that I have as a professional trader, I couldn't handle this risk because it would put me at a reduction of fifty percent or more.

I don't want a 50 percent reduction. I can't handle my emotions in a 50 percent reduction these rule based strategies and systems give us an advantage over the market, but that advantage over the market exists in a world where you will have losing trades if you have an advantage essentially, that is meaning you could have a 60 percent chance of winning. but you are going to lose 40 out of every 100 trades in that scenario, it's not an exact science of course, but just for example, you lose 40 out of every 100 trades, your risk management plan should be small enough, it should be small enough appropriate enough so that you can By losing those 40 trades, no matter how many of them are in a row, you stay sane, you say you stay disciplined and, above all, you do not lose your entire account or reach a point where you can no longer trade more because you are emotionally unstable, also having this best risk management plan will help you become a more disciplined trader.

You can't have discipline with a terrible risk management plan. You will not be disciplined with a trading strategy that makes you lose 50 percent of your account. I promise. So risk management plays a very important role in the discipline. Another thing that plays a very important role in discipline is demo trading and backtesting. You must understand your system inside and outside the rules-based system you create to remain profitable. This video is. I'm going to be very long if I don't end it here if you would be interested in more information like this if you are interested in learning the strategies, the systems that I use, the risk management techniques and the discipline techniques that I use, the same system that I helped.

Many traders like you come from exactly where you are and become professional, profitable traders. Then there is a link in the description for the EAP training program, of course, there are no guarantees here that you will have to

work

hard and therefore for that reason it is up to you whether it becomes profitable or not. I can't guarantee your success, but we've had operators come out of the program much better than they came in, so if you'd like to get your hands on those first 25 pre-practices on Friday on your mobile, click the link in the description.

I will see you there; otherwise watch this video on the other side of my face and watch other content like this with what was said, click the subscribe button, the like button and I'll catch it. you in the following video, good luck in your future operations, talk soon