It took me 5 years to figure out what truly works in trading and that statistically increases the probability of success.

Probably I already covered this topic, but in this post, I'll show you what in my opinion has to be studied more deeply to be one step ahead of the curve.

(alpha in here, believe me)

“Trading? Nah, I’m an investor I don't care”

Before starting, I want to tell you that I was one of the most aggressive “TA deniers” because I thought fundamentals were dictating the price.

After plenty of economic sacrifices, I can tell you that those are lies and once you start understanding technical analysis you also start to figure out that “fundamentals” play 20% of the game while 80% is purely on price action.

So whenever someone tells you: “TA doesn't work, it's astrology for men” that is because he believes in fairytales (like me in the past) and learned the wrong way.

“Wrong way?”

Most people are taught by 90% of “gurus” to utilize MACD, RSI, Stochastic and overall indicators as the primary methods to base their strategies.

How many times did you hear: “Bro, RSI is overbought..time to sell!” ?

Congrats, this is the easiest way to go extra rekt.

What most individuals don't comprehend, along with the functioning of indicators, is that the majority of them are lagging ones.

This means that they trail price movements providing signals AFTER a trend has already begun.

They don’t forecast the future, they “help” to sustain your main thesis, eventually.

Your thesis HAS to be originated by the study of the price action together with the fundamental connotation BEFORE using a single indicator.

Fun fact: you can watch the charts without applying indicators and be one step ahead of most “traders”.

The most profitable guys I know use naked charts.. food for thought, right?

Fix it in your head: there’s no indicator that acts as a passe partout for easy money and those who sell “magic” one are making themselves rich draining your pockets.

What I learned after these 7 years in this jungle, is that this is a game of liquidity played by whales(smart money) that clearly know the behavior of retails.

How they operate from both “technical” and psychological aspects..that’s why they win.

Do you think it's a coincidence, for example, that a specific news is being released at HTF levels?

It's not, because it exploits retail mentality to “justify” the nuke or the surge so retails keep buying or selling like puppets.

Each fundamental news you see “deployed”acts as a catalyst to generate profits independently of its impact on human lives, like in the case of a war, for example.

You think “The Matrix” isn't real but it is, and that's only when you accept that everything is controlled and manipulated that you start to see what others cannot see.

That's also why you notice me talking about “Sharingan”, the innate ability that very few can conquer.

“How can I develop a Sharingan, mate? What are the concepts to master?”

• Market structure (classic HH/HL + LH/LL)

• Support and resistance levels, but most specifically supply and demand zones (more relevant) + order blocks

• Fibonacci levels, which help you to individuate premium and discount areas

• Volume profile (LVN, HVN, VAL, VAH, POC)

• Auction Market Theory and then moving to Fair Value Gaps (FVGs) and Imbalances

• Closures above/below key areas

•Candles size (bodies for gauging strength of the move, wicks for gauging manipulation)

• Statistically effective reversal patterns (H&S/IH&S/Double Top|Bottom/Engulfing)

• Open interest | spot premium | funding

All of these concepts applied to HTFs, because their validity has a bigger “weight” than LTFs.

Is this the only way to chart? No.

Is this the only way to make money? Neither.

Is there a lot to study? Yes, and it's also a constant improvement.

But if you ask me, that's what opened my eyes and grew my Sharingan after YEARS of operating wrongly.