this is the video where I attempt to piss off every single active Forex trader alive wish me luck and here it is the Dirty Dozen video I've been talking about it for a while and people have been asking about it so here it is now in this video I'm going to take 12 technical tools 12 very popular technical tools I can almost guarantee one at least one of which you are using right now and I'm going to tell you to stop using it forever and in this particular video I'm just gonna go over why very quickly but every one of these over time is going to get its own video because it's gonna take a lot of convincing especially this is something you've used a lot or even if you've used a few of these you're using them in combination you need to be talked out of it because this is how people and I can pretty much guess if you're out searching for Forex videos you are one of these people you are in that 99% I throw this number around a lot too and it's it's probably higher than 99% of spot forex traders who are not at a position where they want to be as far as their overall success rate month after month year after year now make no mistake a lot of those people are losing money a vast majority of these 99 percent people are losing badly and we need to take steps to fix that too but let's talk about why that number is so high I mean price either goes up or down it's a 50/50 proposition how can you end up with a fail rate that is that high first off bad money management there are people who can actually make pretty good entries most of the time but money management will always take them down and this channel is going to have an entire playlist dedicated to fixing that because it's not that hard to fix you just have to have a structure in place and nobody's ever really given that to you for some reason this is very seldom talked about online trading psychology is another thing to where you can have great entries you can have really good money management but as traders we have this unique ability to self-sabotage and there are many ways you can do that and this channel is also gonna have a playlist dedicated to that too we're gonna cover everything but way too often the game is over before even starts because you are using terrible outdated technical tools on your chart I don't know how this even started somehow a bunch of people got together and said ok we're gonna open up spot forex we're gonna give people charting platforms and we're gonna have them use these tools and indicators even though they haven't been developed for forex even though some of them are very old even though many of them don't work very well or they're based on concepts that you only find in trading equities and gold and things like that we're gonna use them for forex every expert out there is going to be using them too and so everything a new trader sees is going to make them think that these are the only tools available and this is what they're stuck with and that is not the case I need to get you off of these things first so there are videos in place that will explain why I feel the way I feel and these are my core concept videos that I recommend every single Forex trader no matter how long you've been doing this must watch the big banks video is the single most important video I have ever done the big banks are the people who move price up and down how can you sit there and be a forex trader and call yourself a forex trader if you don't even know who these people are and why they do what they do it's that important but that's okay you get to go watch that video and you'll know exactly how they operate also I tell you not to trade reversals which is a very unpopular video because most people do but if I can get you off of this - because in forex there is no such thing as overbought oversold anybody who is using this terminology in forex has no idea what they're talking about because currencies can go as high or as low as the big banks want them to go before some kind of government has to step in and maybe make a change but price can move thousands and thousands of pips before that happens there are so many reversal traders out there and big banks just eat them up and there are things that this is kind of where this video is going it's really kind of the theme there are things you must eliminate out of your trading forever before I even start telling you what to do instead because I could give you I could give away my own algorithm I use to trade professionally you would still mess it up if your psychology isn't right if your money management isn't right or you haven't eliminated all the things that are holding you down all right that's what the elimination video covers and I've put all these in a playlist and I've linked them all down below so you can go see them at some point because that alone if you just spend I think just a little over an hour on all three of those videos you will in a very very short amount of time become a much better Forex trader just based on what you've learned in those videos because almost nobody is talking about them I'm really surprised how they spend so much time on the nonsense and so little time on what really matters now a quick programming note before we get into the twelve here you might have seen me list the Dirty Dozen before and fundamental analysis was on there I'm taking it off because don't get me wrong I don't use fundamental fundamental analysis hardly at all and I don't think you should either but it's going to get its own video but fundamental analysis is really kind of the opposite of technical analysis and this Dirty Dozen from here forward it is just going to talk about technical tools just so you know that you might have seen this list before you're gonna probably wonder why fundamental analysis is no longer on there I've just taken it out and I have replaced it with another indicator I could honestly make this a dirty fifteen or a dirty 16 but these are the twelve that I think are the worst offenders because I think they're also the most widely used understand before we start and I promise you I'm getting into this but we haven't been able to do this whole spot forex trading very long it just started up in 1996 for the retail market we all remember the Backstreet Boys it was not that long ago really and you're gonna notice a theme here that some of these tools and indicators were invented a long time ago so we can reasonably assume they were not made for the market that we trade yet here we are thinking they're the only options out there and that's just what we use and we wonder why we fail as often as we do there are I I'm probably under shooting at 10,000 different indicators and tools that you can put on a chart at any given time and we are stuck using the same 12 13 14 15 if I were to give you something that was actually made for Forex and programmed you know six months ago it's probably going to be a better option than something that was made for stocks you know back in the 1970s if I were to give you a choice and said okay I need you to get something done here is the Zack Morris brick phone here is a modern-day smartphone which one do you think would work better you could you might be able to get it done on the older phone but your chances are way way better with the smart phone so in trading because this is your money make it so here chances are as high as possible and you cannot do that with these tools so without further ado let's get into it number 12 this is the indicator that I have substituted in when I took fundamental analysis out it is the ADX indicator average directional index built in 1978 and it has two aspects to it most people use it to measure volume which is good if you're a trend trader you kind of need to know when there's enough volume for you to trade because if not you're going to get killed but the volume meter on it is just way too slow and if you try to speed it up it becomes wildly inaccurate it just it gets you into the market way later than it should and there's also a component I guess kind of below it it's two indicators in one it's too bad indicators in one it's called the DI directional index I guess and that tells you if the market is or whatever currency pair you're trading is bullish or bearish and it lags I mean it lags heavier then even things like stochastics do I mean it's very very late if you want talk about an indicator that gets you into everything way too late this is it it had to make the list at some point so that's gonna be number twelve number eleven trend lines okay so understand this is not I'm not ranking 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 nobody ever draws them the right way there is really no one way to draw them right everybody draws them differently and therein lies the problem you know do you connect the very tops do you connect where price closed if price has broken the trend line do you keep it on there everybody has a different idea what trendline is supposed to be and it's really messy there's no one uniform way to do it that's a big problem and on top of that there's just way too many options if you were to show me any chart right now on any time frame I could probably draw five or six different trend lines you know which one do you think the markets are going to respect well the answer is probably none of them because for one once you discover there's even a trend in place it's typically over that ever happened to you you have price has I'm doing air quotes hit three points on the trendline and then you use it and all of a sudden price no longer cares about the trendline that's because there's really no such thing as diagonal support or resistance we're gonna talk about regular support and resistance in just a little bit but if you really think the bank's actually care at all about support and resistance that goes diagonally you're crazy there's the video and this is gonna be great because I could talk about trend lines forever and why they're terrible but if there's one thing if I do one thing in this entire video please now and forever take trend lines off your charts and never bring them back number 10 stochastic s-- 1950s yes you are using an indicator from the 1950s as if nothing has ever evolved since then and it's based on overbought and oversold which already especially if you watch that reversal video you have understood by now that that's not even really a thing in forex so I could just really stop here and that would be reason enough for you to never use this again but it it doesn't even do a good job of showing overbought and oversold I know stock traders that hate this indicator because there it gives so many false signals even when price is range-bound but then on top of that when it price actually trends traders get abliterated because reversal traders are always looking for reversals and they're gonna do that when price is trending and if price just keeps trending stochastics is going to give you so many bad signals that any money you might have made during the range-bound period you are going to lose during the trending period and then some and yes if you look up here there is a fast and a slow version of stochastics and there's a bunch of in between versions you can use too depend on where you put your settings I have used them all I have tested them all they are all terrible on to number nine price levels so this is not something that actually it's not an actual program tool that goes on your charts but we know what price levels are right if you have a round number say like the euro dollar at a one dollar thirty cents even that's considered a price level and people think that is an actual point in time that you should give a shit about not the case because they also say the same thing when price ends in 50 or 20 or 80 there's just way too many options out there that people tell you to use they wait for something to actually happen and then in hindsight they say hey look price had rebounded off the fifty level or the twenty level way too many options and they're not really psychological levels people love to call them this that's not what it is where ever heavy amounts of trading are happening that's what the big banks see and if they just so happen to occur at one of these levels the big banks are gonna see it and they're going to react accordingly but here's the thing you have no idea at what price this is going to happen the price of the euro dollar could skyrocket past a dollar thirty past a dollar thirty one and then finally bounce off one thirty two for a little bit and everybody goes nuts say hey look it bounced off this psychological level that doesn't help you why didn't react to a dollar thirty why didn't it react to a dollar thirty one you know this would have been really helpful to know beforehand but you don't price levels are not helpful and they only look good in hindsight number eight the CCI indicator commodity channel index is something people use for trends and reversals it was built in 1980 and it's just it's just too jerky it gets you into everything way too quick which is not a good thing in this market being too early is no good being too late snow good either and it's just way too over-reactive no matter how much you try to smooth it out it just doesn't work it's almost like you know we all have that friend or that co-worker that just flips out over everything to just completely overreact to every thing that most people would just kind of write off you wouldn't give that person your money to invest he would not trust them to make good decisions and that person is the CCI indicator and people for some reason when he's reversals and use it for trends they think they found a way but it's it just moves way too fast and if you try to smooth it out you completely Fritz out the mechanics of the indicator itself it's I really got excited this one when I first found it I thought I had some some ways to make it work I tried everything and it just failed every single time number seven support and resistance lines okay this might just be the most popular one of the entire 12 and it's gonna take a lot of convincing to get you to take these off your chart but hear me out on this there's just too many possibilities on this one there's too many lines that can be drawn on a chart support and resistance wise on any given time people use all sorts of different timeframes even within let's just say the daily timeframe there's three or four lines that are very easy to draw and they're very easy to see this isn't like trend lines where everybody draws them different pretty much if a support line goes here that's where it goes and every single trader can see them way too easily now what happens when everybody can see them everybody wants to use them and you all of a sudden have become very popular you have created a hot spot on a chart with a lot of trading action and guess who sees that the big banks and they absolutely feast off of it they're gonna find what direction most of those orders and most of those trays are going to go they're gonna trip those orders and they're gonna take price the other way until they have knocked out every single stop-loss they can this is one of the biggest contributors to that 99 percent number because so many people use them number six Japanese candlesticks 18th century what are you doing using these things they're really easy to spot when they work so for example a Japanese candlestick pattern be like a hammer for example but you're not slick you're not the only person that saw the hammer everybody saw it and what happens is every when you see them everybody reacts to them and then the big banks go right after you you might see a hammer that works really well because price reversed and that's a really easy thing to see on a chart but you probably got lazy and you missed the points on the chart were three other hammers completely failed the banks will give traders a win every once in a while to keep them in the game it's called the blackjack theory I've gone over that in my big bank's video but right now go to any currency chart you want I guarantee there's me a bunch of hammers that didn't do what they were supposed to do and you didn't even see them but that one that did work looks super cool and you got really excited and you ended up setting up yourself to fail number five and I put this one after Japanese candlesticks because you know in a way they kind of go together but just chart patterns in general you know we all have chart patterns right but they're really much better for stock trading because most chart patterns are based on trader sentiment and trader sentiment is not something we really use unless we're going against it but there's not really a whole lot of ways to find out you know where the money is going that's the information that the banks know that we don't that's the one handicap we have but for that reason really chart patterns don't really work that well there's still too easy to see for the most part if a triangle is forming on a particular currency pair you really don't need somebody to tell you that you have two eyes you can see the triangle is obviously forming but what's gonna happen is traders will put orders above and below or just above or just below but either way pick banks love to whipsaw here if they love does take those orders trigger them take price the other way make you panic and then after you've exited the trade at a loss then they decide where price is actually going to go and they love doing this with chart patterns because they are very easy to see and traders really like to trade them moving on to number four I forgot when number four was oh, Bollinger bands yes early 80s for these people love Bollinger Bands so around 1982-83 something like that John Bollinger came up with these and they are heavily reliant on the whole idea of overbought and oversold which if you were watch the reversals video you will realize is not really a thing so from the start this indicator was very faulty problem works pretty well in stock trading actually you know there are certain points where stocks can get over stretched but currency is not the case and some people do use them to call trends but when it does that it has the tendency to take you out of that trend too early I'm a trend trader I want to get those really really long runs give me a ton of pips and Bollinger Bands don't allow me to do that because as soon as price retraces they tend to tell me okay the trend is over and you should exit so you should just know by now if you're trading spot forex anything that has to do with a currency being overbought or oversold or something that's gonna help you trade a reversal just doesn't need to be in your chart to begin with number three Fibonacci this is gonna piss a lot of people off so Fibonacci has way too many possibilities to again you could show me any chart any timeframe I could draw about five or six Fibonacci retracements on any chart there's way too many possibilities and what does Fibonacci have to it like five six lines depending on how you set it up that's gonna end up being a lot of lines on one chart price is gonna probably balance off one of those lines but you have no idea which one if there is any indicator out there that looks really really great in hindsight but never works when you do it it's Fibonacci and it's fundamentally flawed from the get-go it's based on patterns that happen in nature and on planet earth and that just has nothing to do with the way spot forex is set up and it again it's too reliant on overbought oversold very few people use Fibonacci to trade breakouts or a trade trends so just right before it even goes on your chart there's so many things wrong with it number two is the RSI the relative strength index back in 1978 somebody came together and put this together for stocks and it didn't even work for stocks that way like most stock traders I know hate the RSI so if it doesn't even work well for what it was created for it's not gonna work really well for Forex either but this is really heavily researched heavily used and there when you see all these things in front of you there is no surprise to me anymore why that 99 percent is where it is and again it's almost used exclusively for overbought or oversold I just keep saying it on to number one and this might surprise a couple of you but because I haven't really talked about it yet but there is a ray of light to this one and it is moving average crossovers so it's not terrible they have a tendency to work in certain situations but it's just not that great either because first off it's like seeing a hammer just because you can draw a 50 a 100 and 200 SMA on your chart doesn't mean you know something somebody doesn't you know you're about to make yourself a very popular when price approaches one of those levels or when those two moving averages cross and it just gets you in too late I have a way that can get you in much sooner and that's the approach I'm going to talk about when I make that moving average crossover video but on any given day I am probably entering a trend before you because you are using moving average crossovers and you're just getting in too late it almost might be a situation where it's a trade to where I'm gonna makes a little bit I'm gonna actually make a little bit of money and you're gonna lose the trade all together and you just can't afford to have those things happening to you over and over again that's the danger of getting into a trade too late too early is no good to lates no good either so as I had mentioned before I'm going to make an individual video on every single one of these you can kind of see where my headspace is and I can hopefully especially if you're using them right now get you away from them forever it's a hard sell because you spend so much time on and you've just played around with it so often and try to develop your own systems with these tools but the sooner I can get them out of your trading toolbox the better and as is going to be the case with this moving average crossover video I am going to give you a much better option I'm going to do that on some of these videos and then going forward I'm gonna have other videos where I release some of the really really good tools and indicators that I have used over the years as well so if you'd like to see that and you also want to learn some really good trading psychology and money management tactics subscribe to the channel it's here for you I mean who else is talking about this who else is saying here are 12 really really common indicators that everybody uses and loves and you should not use any of them nobody but I would have never become a forest prop trader had I had not done this first you really have to eliminate a lot of this stuff before you can even think about moving forward but following the same tired advice with the same tired old technical tools being used every time is not going to get you anywhere you need a channel like this to help you move forward and this is what I put together I have new videos that come out every week I have a podcast that comes out every week so many directions for you to go I'm gonna link it all down below but either way subscribe hit that bell and we're gonna do some things here guys let's go get it