Ahmadreza Jabalameli

Trading experience

12 +
Since 2004

Teaching experience

1 +
Since 2018

Teaching to

8563 +
Students

Online Training

3000 +
Hours

What technical analysis is and why it may cause failure in trading.

What is technical analysis?

Why may it cause failure in trading?

Technical analysis is a method of analyzing the price charts in financial markets that is based on Classical Finance.

This type of analysis became outdated a while ago, yet has become more common in the so-called third world countries. Developing countries still use these tools for trading in the market.

An indicator is a tool that uses statistical data of the price and performs a series of calculations. It is intended to show the future price, but it is extremely unreliable and deceptive.

Some indicators are known as corrective indicators. These types of indicators may be compared to people, who constantly change their mind and are not stable in their opinions. The corrective indicator, as its name implies, constantly adjusts the shown result.

Suppose you have one of these indicators installed on your trading platform and you are waiting for it to give you a trading signal. Let’s say that after waiting for a while, the indicator shows you a Long signal and you enter the market. Then, after a few minutes, it corrects the Long signal and displays a Short signal instead.

It seems ridiculous, yet it is the way indicators work.

Unfortunately, many people still hope to make some profit from the indicators after years of losses.

What is technical analysis and why may it make traders to fail?

You have probably heard that technical analysis is based on one old saying: “History repeats itself”.

Many people have lost their investments just because of the presumptuous belief.

Meanwhile, the pockets of brokers are full, as they constantly advertise various indicators and methods with a lot of glamor.

Let me assure you my dear friends that trading and making money in financial markets can never be based on a multi-indicator signal.

Giving bonuses and providing free technical analysis training such as Elliot, Gann, Ichimoku, Fibonacci, Candle Stick patterns, Andrew’s Fork and thousands more, brokers try to make traders indifferent to loss.

Indifference to loss is a term widely used in financial markets, and it happens when a trader gets to a point where he or she no longer cares about losing the money. An unfortunate trader leaves investment management system and continues this process as long as he is about to go bankrupt and lose his entire investment.

Undoubtedly, all of us trade in financial markets to make money steadily. Our goal is not to become an analyst and use indicators or different patterns.

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Why may it seem that technical analysis methods and indicator signals are efficient?

There is a principle in financial markets, which is called random sequence. It means that events occur consecutively over a period of time, yet in a completely random manner.

Random sequence shows that anything can happen in the market randomly.

To get the most out of it, open your trading platform right now and draw a line in the middle of a page. Then look at the candles carefully.

According to this principle, it is hardly possible for the price not to coincide with this line and especially in several points. This is the effect of frequent changes and high impact of liquidity in the market.

That is how the misconception that technical analysis methods and indicator signals appear to be efficient.

Your time and money are worth much more than investing in random market events.

All technical analysis methods, which are based on indicators, use the principle of random sequence, but the reality is different from what you think.

Look at the picture below:

Pay attention to the person sitting and watching a bird. Suppose this person has been sitting and watching only whatever is on the wall since the beginning of his life. He can just imagine a bird is flying in front of him.

Do you think your vision is wider?

Absolutely not. Why? We watch the reality: we see a person moving a statue of a bird in front of the source of light.

This can be compared with technical analysis. Probably, you have never imagined what is really hidden behind the indicators and how silly it can be to invest using these methods.

What is the solution?

How to make the desired profit by trading in Forex, stock exchange and with cryptocurrencies?

You need to change your attitude and mindset.

It is not the analysis, but trading that can make you successful. It is trading with Jabalameli Price Action Method.

This approach will teach you the basics of identifying the influential traders’ behavior and will show you the clues to the entry and exit of the money flow in the market.

Once you can identify the clues of the money flow coming into the market, you should follow it.

No matter which market you want to trade in, no matter which trading timeframe you choose, you can make continuous profit by learning the correct trading method.

No tools are needed and used in Jabalameli Price Action Method.

You can easily review any chart of any market in just a few seconds and decide whether to buy or to sell, or to wait some time for a better position.

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Conclusion

Trading in financial markets is a highly-paid job.

Do you want to waste your money and time on technical analysis or any other method, instead of taking a free course of Jabalameli Price Action Trading right now? Are you ready take a step towards your success?

Download Jabalameli Price Action Trading course right now!

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