this is the video where I attempt topiss off every single active Forex trader alive wish me luck and here it is the Dirty Dozen videoI've been talking about it for a while and people have been asking about it sohere it is now in this video I'm going to
take 12 technical tools 12 verypopular technical tools I can almost guarantee one at least one of which youare using right now and I'm going to tell you to stop using it forever and inthis particular video I'm just gonna go over why very quickly but every one ofthese over
time is going to get its own video because it's gonna take a lot ofconvincing especially this is something you've used a lot or even if you've useda few of these you're using them in combination you need to be talked out ofit because this is how people and I
can pretty much guess if you're outsearching for Forex videos you are one of these people you are in that 99% Ithrow this number around a lot too and it's it's probably higher than 99% ofspot forex traders who are not at a position where they want to be as
far astheir overall success rate month after month year after year now make nomistake a lot of those people are losing money a vast majority of these 99percent people are losing badly and we need to take steps to fix that too butlet's talk about why that number is so
high I mean price either goes up or downit's a 50/50 proposition how can you end up with a fail rate that is that highfirst off bad money management there are people who can actually make pretty goodentries most of the time but money management will always take them downand
this channel is going to have an entire playlist dedicated to fixing thatbecause it's not that hard to fix you just have to have a structure in placeand nobody's ever really given that to you for some reason this is very seldomtalked about online trading psychology is another thing to
where you can havegreat entries you can have really good money management but as traders we havethis unique ability to self-sabotage and there are many ways you can do thatand this channel is also gonna have a playlist dedicated to that too we'regonna cover everything but way too often the
game is over before even startsbecause you are using terrible outdated technical tools on your chart I don'tknow how this even started somehow a bunch of people got together and said okwe're gonna open up spot forex we're gonna give people charting platforms andwe're gonna have them use these tools
and indicators even though they haven'tbeen developed for forex even though some of them are very old even though many ofthem don't work very well or they're based on concepts that you only find intrading equities and gold and things like thatwe're gonna use them for forex every expert out
there is going to be usingthem too and so everything a new trader sees is going to make them think thatthese are the only tools available and this is what they're stuck with and thatis not the case I need to get you off of these things first so there
are videosin place that will explain why I feel the way I feel and these are my coreconcept videos that I recommend every single Forex trader no matter how longyou've been doing this must watch the big banks video is the single mostimportant video I have ever done the big
banks are the people who move price upand down how can you sit there and be a forex trader and call yourself a forextrader if you don't even know who these people are and why they do what they doit's that important but that's okay you get to go watch
that video and you'llknow exactly how they operate also I tell you not to trade reversals which isa very unpopular video because most people do but if I can get you off ofthis – because in forex there is no such thing as overbought oversold anybody whois using this terminology
in forex has no idea what they're talking aboutbecause currencies can go as high or as low as the big banks want them to gobefore some kind of government has to step in and maybe make a change butprice can move thousands and thousands of pipsbefore that happens there are
so many reversal traders out there and big banksjust eat them up and there are things that this is kind of where this video isgoing it's really kind of the theme there are things you must eliminate outof your trading forever before I even start telling you what to do
insteadbecause I could give you I could give away my own algorithmI use to trade professionally you would still mess it up if your psychologyisn't right if your money management isn't right or you haven't eliminatedall the things that are holding you down all right that's what the eliminationvideo covers
and I've put all these in a playlist and I've linked them all downbelow so you can go see them at some point because that alone if you justspend I think just a little over an hour on all three of those videos you will ina very very short amount
of time become a much better Forex trader just based onwhat you've learned in those videos because almost nobody is talking aboutthem I'm really surprised how they spend so much time on the nonsense and solittle time on what really matters now a quick programming note before we getinto the
twelve here you might have seen me list the Dirty Dozen before andfundamental analysis was on there I'm taking it off becausedon't get me wrong I don't use fundamental fundamental analysis hardlyat all and I don't think you should either but it's going to get its ownvideo but fundamental analysis
is really kindof the opposite of technical analysis and this Dirty Dozen from here forwardit is just going to talk about technical tools just so you know that you mighthave seen this list before you're gonna probably wonder why fundamental analysisis no longer on there I've just taken it out
and I have replaced it with anotherindicator I could honestly make this a dirty fifteen or a dirty 16 but theseare the twelve that I think are the worst offenders because I think they'realso the most widely used understand before we start and I promise you I'mgetting into this but
we haven't been able to do this whole spot forex tradingvery long it just started up in 1996 for the retail market we all remember theBackstreet Boys it was not that long ago really and you're gonna notice a themehere that some of these tools and indicators were invented a
long time agoso we can reasonably assume they were not made for the market that we tradeyet here we are thinking they're the only options out there and that's justwhat we use and we wonder why we fail as often as we do there are I I'm probablyunder shooting at
10,000 different indicators and tools that you can put ona chart at any given time and we are stuck using the same 12 13 14 15 if Iwere to give you something that was actually made for Forexand programmed you know six months ago it's probably going to be a
betteroption than something that was made for stocks you know back in the 1970s if Iwere to give you a choice and said okay I need you to get something done here isthe Zack Morris brick phone here is a modern-day smartphone which one do youthink would work better you
could you might be able to get it done on theolder phone but your chances are way way better with the smart phone so intrading because this is your money make it so here chances are as high aspossible and you cannot do that with these tools so without further
ado let'sget into it number 12 this is the indicator that I have substituted inwhen I took fundamental analysis out it is the ADX indicator average directionalindex built in 1978 and it has two aspects to it most people use it tomeasure volume which is good if you're a trend
trader you kind of need to knowwhen there's enough volume for you to trade because if not you're going to getkilled but the volume meter on it is just way too slow and if you try tospeed it up it becomes wildly inaccurate it just it gets you into the
market waylater than it should and there's also a component I guess kind of below it it'stwo indicators in one it's too bad indicators in one it's called the DIdirectional index I guess and that tells you if the market is or whatevercurrency pair you're trading is bullish or bearish
and it lags I mean it lagsheavier then even things like stochastics do I mean it's very very late if youwant talk about an indicator that gets you into everything way too late this isit it had to make the list at some point so that's gonna be number twelve
numbereleven trend lines okay so understand this is not I'm notranking these I'm just listing these but if I was ranking these trend lines could very easily be the worst trend lines are awful first off nobodyever draws them the right way there is really no one way to draw
them righteverybody draws them differently and therein lies the problem you know do youconnect the very tops do you connect where price closed if price has brokenthe trend line do you keep it on there everybody has a different idea whattrendline is supposed to be and it's really messy there's
no one uniform wayto do it that's a big problem and on top of that there's just way too manyoptions if you were to show me any chart right now on any time frame I couldprobably draw five or six different trend lines you know which one do youthink the
markets are going to respect well the answer is probably none of thembecause for one once you discover there's even a trend in place it'stypically over that ever happened to you you have price has I'm doing air quoteshit three points on the trendline and then you use it and
all of a suddenprice no longer cares about the trendline that's because there's reallyno such thing as diagonal support or resistance we're gonna talk aboutregular support and resistance in just a little bit but if you really think thebank's actually care at all about support and resistance that goesdiagonally you're
crazy there's the video and this is gonna begreat because I could talk about trend lines forever and why they're terriblebut if there's one thing if I do one thing in this entire video please nowand forever take trend lines off your charts andnever bring them back number 10 stochastic
s– 1950s yes you are usingan indicator from the 1950s as if nothing has ever evolved since then andit's based on overbought and oversold which already especially if you watchthat reversal video you have understood by now that that's not even really athing in forex so I could just really
stop here andthat would be reason enough for you to never use this again but it it doesn'teven do a good job of showing overbought and oversold I know stock traders thathate this indicator because there it gives so many false signals even whenprice is range-bound but then on top
of that when it price actually trendstraders get abliterated because reversal traders are always looking forreversals and they're gonna do that when price is trending and if price justkeeps trending stochastics is going to give you so many bad signals that anymoney you might have made during the range-bound period
you are going to loseduring the trending period and then some and yes if you look up here there is afast and a slow version of stochastics and there's a bunch of in betweenversions you can use too depend on where you put your settings I have used them all
Ihave tested them all they are all terrible on to number nine price levelsso this is not something that actually it's not an actual program tool thatgoes on your charts but we know what price levels are right if you have around number say like the euro dollar at a
one dollar thirty cents even that'sconsidered a price level and people think that is an actual point in timethat you should give a shit about not the case because they also say the samething when price ends in 50 or 20 or 80 there's just way too many options outthere
that people tell you to use they wait for something to actually happenand then in hindsight they say hey look price had rebounded off the fifty levelor the twenty level way too many options and they're not really psychologicallevels people love to call them this that's not what it iswhere
ever heavy amounts of trading are happening that's what the big banks seeand if they just so happen to occur at one of these levels the big banks aregonna see it and they're going to react accordingly but here's the thing youhave no idea at what price this is going
to happen the price of the euro dollarcould skyrocket past a dollar thirty past a dollar thirty one and thenfinally bounce off one thirty two for a little bit and everybody goes nuts sayhey look it bounced off this psychological level that doesn't helpyou why didn't react to a dollar
thirty whydidn't it react to a dollar thirty one you know this would have been reallyhelpful to know beforehand but you don't price levels are not helpful and theyonly look good in hindsight number eight the CCI indicator commodity channelindex is something people use for trends and reversals it was
built in 1980 andit's just it's just too jerky it gets you into everything way too quick whichis not a good thing in this market being too early is no good being too late snowgood either and it's just way too over-reactive no matter how much you tryto smooth it
out it just doesn't work it's almost like you know we all havethat friend or that co-worker that just flips out over everything to justcompletely overreact to every thing that most people would just kindof write off you wouldn't give that person your money to invest he would nottrust them
to make good decisions and that person is the CCI indicator andpeople for some reason when he's reversals and use it for trends theythink they found a way but it's it just moves way too fast and if you try tosmooth it out you completely Fritz out the mechanics of
the indicatoritself it's I really got excited this one when I first found it I thought Ihad some some ways to make it work I tried everything and it just failedevery single time number seven support and resistancelines okay this might just be the most popular one of the entire
12 and it'sgonna take a lot of convincing to get you to take these off your chart buthear me out on this there's just too many possibilities on this one there'stoo many lines that can be drawn on a chart support and resistance wise on anygiven time people use all
sorts of different timeframes even within let'sjust say the daily timeframe there's three or four lines that are very easyto draw and they're very easy to see this isn't like trend lines whereeverybody draws them different pretty much if a support line goes here that'swhere it goes and every single
trader can see them way too easily now whathappens when everybody can see them everybody wants to use them and you allof a sudden have become very popular you have created a hot spot on a chart witha lot of trading action and guess who sees that the big banks
and theyabsolutely feast off of it they're gonna find what direction most of those ordersand most of those trays are going to go they're gonna trip those orders andthey're gonna take price the other way until they have knocked out every singlestop-loss they can this is one of the biggest
contributors to that 99 percentnumber because so many people use them number sixJapanese candlesticks 18th century what are you doing using these things they'rereally easy to spot when they work so for example a Japanese candlestickpattern be like a hammer for example but you're not slick you're not the onlyperson
that saw the hammer everybody saw itand what happens is every when you see them everybody reacts to them and thenthe big banks go right after you you might see a hammer that works reallywell because price reversed and that's a really easy thing to see on a chart butyou
probably got lazy and you missed the points on the chart were three otherhammers completely failed the banks will give traders a win every once in a whileto keep them in the game it's called the blackjack theory I've gone over that inmy big bank's video but right now go
to any currency chart you want I guaranteethere's me a bunch of hammers that didn't do what they were supposed to doand you didn't even see them but that one that did work looks super cool and yougot really excited and you ended up setting up yourself to fail number
fiveand I put this one after Japanese candlesticks because you know in a waythey kind of go together but just chart patterns in general you know we all havechart patterns right but they're really much better for stock trading becausemost chart patterns are based on trader sentiment and trader sentiment
is notsomething we really use unless we're going against it but there's not reallya whole lot of ways to find out you know where the money is going that's theinformation that the banks know that we don't that's the one handicap we havebut for that reason really chart patterns don't
really work that wellthere's still too easy to see for the most part if a triangle is forming on aparticular currency pair you really don't need somebody to tell you that youhave two eyes you can see the triangle is obviously forming but what's gonnahappen is traders will put orders
above and below or just above or just belowbut either way pick banks love to whipsaw here if they love does takethose orders trigger them take price the other way make you panic and then afteryou've exited the trade at a loss then they decide where price is actuallygoing to
go and they love doing this with chart patterns because they arevery easy to see and traders really like to trade them moving on to number four Iforgot when number four was oh, Bollinger bands yes early 80s for these peoplelove Bollinger Bands so around 1982-83 something like that John
Bollinger cameup with these and they are heavily reliant on the whole idea of overboughtand oversold which if you were watch the reversals video you will realize is notreally a thing so from the start this indicator was very faulty problemworks pretty well in stock trading actually you know there
are certainpoints where stocks can get over stretched but currency is not the caseand some people do use them to call trends but when it does that it has thetendency to take you out of that trend too early I'm a trend trader I want toget those really really long
runs give me a ton of pips and Bollinger Bandsdon't allow me to do that because as soon as price retraces they tend to tellme okay the trend is over and you should exit soyou should just know by now if you're trading spot forex anything that has todo with
a currency being overbought or oversold or something that's gonna helpyou trade a reversal just doesn't need to be in your chart to begin with numberthree Fibonacci this is gonna piss a lot of people off so Fibonacci has way toomany possibilities to again you could show me any chart
any timeframe I coulddraw about five or six Fibonacci retracements on any chart there's waytoo many possibilities and what does Fibonacci have to it like five six linesdepending on how you set it up that's gonna end up being a lot of lines on onechart price is gonna probably balance
off one of those lines but you have noidea which one if there is any indicator out there that looks really really greatin hindsight but never works when you do it it's Fibonacci and it's fundamentallyflawed from the get-go it's based on patterns that happen in nature and onplanet earth
and that just has nothing to do with the way spot forex is set upand it again it's too reliant on overbought oversold very few people useFibonacci to trade breakouts or a trade trends so just right before it even goeson your chart there's so many things wrong with it
number two is the RSI therelative strength index back in 1978 somebody came together and put thistogether for stocks and it didn't even work for stocks that way like most stocktraders I know hate the RSI so if it doesn't even work well for what it wascreated for it's not
gonna work really well for Forex either but this is reallyheavily researched heavily used and there when you see all these things infront of you there is no surprise to me anymore why that 99 percent is where itis and again it's almost used exclusively foroverbought or oversold I just
keep saying it on to number one and thismight surprise a couple of you but because I haven't really talked about ityet but there is a ray of light to this one and it is moving average crossoversso it's not terrible they have a tendency to work in certain situationsbut
it's just not that great either because first off it's like seeing ahammer just because you can draw a 50 a 100 and 200 SMA on your chart doesn'tmean you know something somebody doesn't you know you're about to make yourself avery popular when price approaches one of those levels
or when those two movingaverages cross and it just gets you in too late I have a way that can get youin much sooner and that's the approach I'm going to talk about when I make thatmoving average crossover video but on any given day I am probably entering atrend
before you because you are using moving average crossovers and you'rejust getting in too late it almost might be a situation whereit's a trade to where I'm gonna makes a little bit I'm gonna actually make alittle bit of money and you're gonna lose the trade all together and you
justcan't afford to have those things happening to you over and over againthat's the danger of getting into a trade too late too early is no good tolates no good either so as I had mentioned before I'm going to make anindividual video on every single one of these you
can kind of see where myheadspace is and I can hopefully especially if you're using them rightnow get you away from them forever it's a hard sell because you spend so muchtime on and you've just played around with it so often and try to develop yourown systems with these
tools but the sooner I can get them out of yourtrading toolbox the better and as is going to be the case with this movingaverage crossover video I am going to give you a much better option I'm goingto do that on some of these videos and then going forward
I'm gonna have othervideos where I release some of the really really good tools and indicatorsthat I have used over the years as well so if you'd like to see that and youalso want to learn some really good trading psychology and money managementtactics subscribe to the channel it's here
for you I mean who else is talkingabout this who else is saying here are 12 really really common indicators thateverybody uses and loves and you should not use any of themnobody but I would have never become a forest prop trader had I had not donethis first you really
have to eliminate a lot of this stuff before you can eventhink about moving forward but following the same tired advice with the sametired old technical tools being used every time is not going to get youanywhere you need a channel like this to help you move forward and this
is what Iput together I have new videos that come out every week I have a podcast thatcomes out every week so many directions for you to go I'm gonna link it all downbelow but either way subscribe hit that bell and we're gonna do some things hereguys let's go
get it
