Hey hey: what's up my friend, so in today's training you will learn the truth about technical analysis that nobody tells you, because, let me ask you, have you ever, you know come across books textbook or from gurus telling you things like buy when the price comes into Support because the market is going to bounce up higher or sell right when you see a shooting star pattern because the market is going to collapse lower when you see a hammer, knock knock buy because the stock is going to blast off higher right. You know that that's not the truth, because trading isn't as easy right, as you know what it seems right, because from the moment you buy to the time you sell, the market can throw 101 different patterns at you and you get caught off guard. So this is why, in today's training, i want to share with you right the truth about technical analysis, why traders lose money right with it and, more importantly, how you can avoid it right. So all this and more, let's get started.

First, let's talk about support and resistance and the truth behind it right. So when traders deal with support and resistance, this is their expectation right. Let me explain what i mean right, so they will draw their support on the chart. They draw their resistance, and then you see how the price goes up comes down, goes up, comes down, goes up, okay, and this is what they expect.

Support and resist resistance to be like right. Price comes into support it. Bounce up, higher price goes up to resistance. Reverse down lower all right and what happens is that when the price breaks out of resistance, they will say: oh man, right now.

Resistance is broken time to buy the breakout, they buy the breakout and the next thing. They know the price collapse down lower and they get stopped out. Then they see that hey. You know what the price is now broke below support.

Ah, this market is going to collapse down lower time to shorten this market, sell, sell, sell what happens this? The price then rally up higher now, what's what's going on right, what's going on over here and has this ever happened to you and if you answered yes right, then you're not alone, because this is what a textbook teach you of how support and resistance should be. Like but in reality, it's not quite like this because in reality, right support and resistance is more of like what i'm about to show you right now so support resistance. Right. So, let's say, for example, the price goes up.

It comes down. It exits the high over here comes back down, lower exit, the lows by a little bit and then rally up higher and it kind of like gets stuck in this range. So when you draw your support and resistance, don't draw them as a single line on your chart, i mean you can draw them as a line on your chart, but treat them right. More importantly, treat them as an area on your child, because that is what support and resistance is all about.

There are areas on your chart, something like this. This is an area of resistance. This is an area of support, so when you treat support and resistance as areas on your chart, you don't get fake out as easily, because you know that those are areas on your chart just because the price exceed resistance by you know one or two pips or One or two ticks it doesn't mean that the resistance is broken because the price could still reverse down lower from that area. So this is the reality right of trading and drawing or dealing with support and resistance.

So if you didn't see a chart, it looks something like this. So when you draw your support and resistance right, you can draw s lines perfectly fine, but treat them as areas. So in this case i've highlighted them as areas on your chart. You can see that this is uh an area of previous support which become resistance right notice.

This is an area of resistance price reach. This high hit down lower, then price hit up higher, taking out this highs before it heads down lower once again so same thing. Over here right, previous support, which could become resistance, price heats up higher previous support, which could become resistance. Price hits down lower that re-test.

This area of resistance didn't quite reach this high over here, and then it collapsed down lower once again. So this is the reality right of support and resistance. They are an area on your chart. So the lesson is this right: the truth behind support and resistance is treat them as areas on your chart, not a specific line.

Now the reason why support and resistance are areas on your chart is because right, it is pretty much dominated by two group of traders in the market, the cheaper traders and the formal traders. Let me explain so: cheapo traders are traders who want to buy the extreme low of support. Ah man right, i'm gon na buy the cheapest the best, the lowest price. That is me, i'm the cheapo trader, so they want to buy the extreme lowest price.

That's the first group of traders, the cheapo traders. On the other hand, you have another group of traders which we call fomo or fear of missing or traders the moment the price comes into support. Oh, let me quickly buy right before the price rallies higher rate i'm going to buy right now before i miss the move. So there are these two group of traders right, the cheaper and the formal and here's the thing right.

You have no idea which group of traders will dominate. Sometimes it's the cheaper, sometimes it's the formal. So this is why support and resistance. They are an area on your chart.

The price sometimes could just touch support and then quickly rally higher. Sometimes sometimes the price would come deeper into support before it rallies higher all right. So you can see these are the two group of traders at play which result right in support and resistance being areas on your chart. Number two: the truth about trend line trading so have a look at this right.

This is what traders expect right when they deal with trend lines. They look at the chart like this and then they draw a trend. Like oh look, rayna, you tested once two times three times it's gon na test to the exact peak over here you know before this currency pair reverse down lower and in reality, here's right. What's reality right, you get something like this.

The market reverse, exceeds your trend line and then show signs of reversal, and when this happens, what you do this is where you shift your trend line so notice over here you start shifting your trend line. I've shifted as an example over here. For you, this red line, you shift your trend line out further to take into account this recent move, and, what's going to happen, is that you know, as the market keeps breaking your trend line, you keep shifting your trend line. Can you even not go to like in future? Let's say an example could be like this: you shift out even further as the market.

Let's say, the price does goes up even higher and reverse your trend line keeps shifting up further and further. So what do you do right? How do you deal with this issue? Well, here's the thing right trend lines right. They are similar to support and resistance. The only difference is is that, instead of drawing horizontal support and resistance trend, lines are pretty much diagonal.

So what you can do is to treat trend lines again as an area on your chart. So in this case, what you can do is to draw trend lines as an area. So in this case you can see this is an area on your chart where you can expect selling pressure, don't draw it or you can draw it as a line if you want to but treat trend line as an area on your chart. In fact, i think it's better if you call it trend area, but they call it trendline so anyway.

This is what you can do right to kind of like overcome this problem. So remember right. The truth about trendline is this right trend lines are diagonal support and resistance, and they are pretty much areas on your chart as well. Moving on number three, the truth about breakout training and by the way, if you are enjoying this video, so far smash the thumbs up button.

If not then hit subscribe cool, then, let's get started so for breakout trading right. The expectations for most traders. Look something like this: they look at this chart over here. Hey rainer, look at this market.

It's in an app friend look rainer! Previously the price broke above this highs. It rarely broke above this high really broke above this high really right now it broke above this high it's gon na. Rarely that's the thought process right because you know over the last few you know. Maybe months of this chart, this stock is in an uptrend.

Every breakout seems to be working out in your favor. So you look at this man it's time to buy, so you buy the breakout and then what happens is that reality hits right when you buy the breakout. This market somehow knows that you're buying the breakout over here. It quickly reverse against you right and collapse lower and now.

Finally, this breakout has failed right. The moment you decided to give this a shot right to go along right. So that's the reality right is that anything can happen in the markets. No matter how great a chart looks, no matter how good the trading setup is no matter how many stars are aligned.

You know pluto mass venus, all aligned, the trait can still go wrong. So this is uh the lesson behind it is that the truth about breakout trading or rather can also be applied to pullback trading reversal trading or any form of trading is this. Is that breakouts can fail right anything can happen in the markets, any type of trading setup that you're looking at can fail in the market. So it's very important to cut your loss and move on.

It's imagine this. I imagine you're dating a girl, okay and then you you're texting her. She always texts. You back reply, you very fast.

Her messages are very long. She always initiate conversations with you. You bring out to dinner, she dressed up beautifully for you and one fine day right. The girl invites you back to a house, in fact, you guys are not in her bedroom and what happens to that.

She starts to undress and you get ready, you know to you, know, get the groove going and when she undress you saw that something's not quite right. There's a little cactus on her there's a cactus and that's not quite right because you know you're expecting to see a camel too, but you see a cactus now at this point. What do you do? Do you pray? Oh my? Can you can you please turn it into a you know, cactus to a camel toe? No, all right, of course, you probably you know, cut your loss and move on right get out of the room right, because clearly, this is not what you expect right. Clearly, you have been proven wrong and it's the same for trading right.

You can get the best trading set up. The best chart pattern whatsoever. All the stars are aligned, no mars venus pluto all the light and the trait can still go wrong and when it goes wrong, do you pray that the market reverse back in your favor or do you cut your loss and move on? I hope you cut your loss and move on and that's my point right in this in this section over here: cool, okay, so number, four, the truth about your trade trading entries right, here's the thing right! So if you look at this chart over here this time, let's talk about pullback trading, you can see that this market is in an uptrend. It makes a pullback towards this area of support right and you have a valid entry trigger to go short.

In fact, this is what we call a false break where the price took out this low. So right, let me just highlight that in case my doodle gets in the way the price took out this low over here right took out the low and then quickly reversed up higher. So this tells you that there's a false breakdown towards that outside, so you go along right. Thinking that thinking that hey you know this market could possibly reverse up higher.

So that's your expectations, but the truth is in reality right. What could happen? Is that, or rather often it could happen, is that the market gets you long right, suckers you into the trade and then reverse against. You hit your stop loss before it starts to go in your favor. It could happen.

I'm sure it has happened to you before. Okay, that's the reality. So so, what's the lesson over here right since we can't change reality, the lesson here is relatively simple: is this right? Is that when you are trading right, you want to expect that the market could possibly hit your stop loss right before moving in your favor, or rather the market could possibly move against you before moving in your favor. So what you want to do is to make sure that your stop-loss is set a distance away from price structure.

So you don't get stopped out prematurely, how you do that is relatively simple. So, let's say if we are dealing with uh how about support right. So let's say the market is in support in a range okay. Then let's say you buy at the lows of support over here market.

Rarely up higher, don't set your stop loss just below support, because you know support is an area on your chart, because what could possibly happen is that the market could trickle down lower hit your stop loss and then rally up higher from there because after all, you Know that support and resistance they are an area on your chart, so what you need to do is to set your stop loss, a distance away from support a distance away from it. So, ideally, your stop-loss is, let's say somewhere over here, so because you know that if your stop-loss is here, let's call it sl. If the price hits your stop-loss, probably support is likely to be broken and you want to get out of your trader. You want to set your stop-loss at a level where, if the price reaches it, support could actually still be intact, because if that's the case, then why is your stop-loss at that level? So the key is to set your stop-loss a distance away from price structure away from the noise of the market.

So you don't get stopped out of your trades prematurely, alrighty so number five, the truth about reversal trading. So what traders expect right when it comes to reversal, is that you know reversals are going to be swift. It's going to be fast. So, for example, the market reverse down lower boom right quickly, reverse hub breaks out the previous high market collapse down lower.

This is during the covet right on the s. P. 500 boom right market reverse up and breaks out above the all-time high. Now this is kind of like you know what traders expect no reversal are usually pretty sweet, but the truth is right reversal.

It can take time, so let me just take you back to you know during the september 11 right the attacks in the twin tower, so you can see over here the decline right took about 931 days, so basically from here all the way down to here the Decline in the stock market was about 931 days and for it to re-test right the previous highs over here right. This took the stock market 1834 days, as shown over here, so basically from here all the way down to here. It took 1834 days for it to reach back the previous all-time high, another example. What about the 0809 financial crisis sometime about 10 plus years ago, you can see over here the decline right took about 511 days from here.

Okay, all the way down to here the stock market took 511 days right to reach the low to bottom up and for it to reach back the all-time highs. It took 1491 days from here to go back to the all-time highs over here it took 1491 days. So the reality is that you know reversal in the market is not always that sweet, no come down. Lower boy break out all-time high, come down lower boy breaks out all the time.

Sometimes it can be a slow grind up higher to reclaim back the all-time high. So please right, bear that in mind right, not everything is you know it's fast and furious yeah, so the truth about reversal trading is this. Is that you know reversal, it can take time and by the way, if you find that this type of trading methodology has you know too much, you know, ambiguity subjectivity it's not really to your liking. Then i highly recommend you consider right systems trading.

This is a trading method right which allows you to generate an extra 10 20 or even 40 a year without analyzing financial reports studying chart patterns or following the news, and in fact, in my upcoming web class, i'll even share with you a proven trading system, a Stock trading system that has generated 325 over the last 22 years and also even if you have a small account i'll share with you, how you can take a small account and grow it to seven figures and beyond right. So all this and more in my free upcoming web class, if you're interested i'll put the link somewhere below this video and you'll come to this page. That looks something like this right. This is the page.

So all you need to do is just fill in your details. Your name and your email address over here right and then you just click this orange button over here all right and you're pretty much good to go so the next event is in june, but we'll hold this. You know once a month so uh in future. If you come in during july august whatsoever right, there will be a new date for it as well, so go and sign up for it right if you want to learn how to trade in a very systematic manner, without subjectivity ambiguity and whatnot.

So with that said, i wish you good luck. Good trading, i will talk to you soon.