Forget Technical Analysis! THIS is the strategy of the World Trading Champion!

Forget child patterns. Forget all the secret stuff like trend lines, candlestick formations or anything else. Have you ever seen a professional trader or a professional trading floor? What kind of tools they choose? If this is interesting for you, listen today because I give you an explanation how the professionals work and what kind of tools they use. And I think it will lovely for you to understand everything of this. It give you the next step in your trading BS if you want to see it. I translated this video with AI because my English is not perfect and I think it will be amazing for you to understand everything of it. Thank you.

Conventional chart patterns, regular trend lines, head and shoulders and all the rest. There are thousands of candlestick formations for trend reversals, for trend continuations, for breakouts. All of these things exist, but are they really effective for you? Or have you ever checked what happens when you use these patterns at the right locations? Specifically where you reference the past, where really big players have entered or exited the market in those places, it's much more effective for you to look out for such things. But let's go even further now. Just imagine you look deep into a candle chart. There is so much more information there than just this pattern. There are the volumes, there's the time. And many retail traders really believe that with such setups, with these candlestick formations, you could sustainably make money. Unfortunately, that's not true. There are market phases, for example, in a very strong uptrend, where such trend continuation and breakout setups are justified. They work at that moment because the market has a certain stability to which these patterns belong. Or a trend line can also be interesting and functional when the market has exactly this consistent structure. But this structure prevails because the players are accepting higher prices step by step. And now I want to show you a bit how we can unravel all of this. I'm looking forward to it. Let's take a look at what possibilities there are, for example, to draw such trend lines. For example, you can create some trend lines at the low points that continue on.

You can also go ahead and say, I'll take this one and connect it with as many points as possible. You can also say, I'll take this one and connect it with as many points as there are here. There's also the option to draw the trend lines down here and maybe there's a breakout here, or maybe not. But how much does that really help you? After all, we have no idea when a trend line actually has any significance. Isn't it much more important to know where markets have consolidated and where They've accelerated strongly. That's what we should be looking out for. I want to show you another example that will make this clear and obvious to you very quickly. Take a look here. Let's look at a steep downtrend like this and see how we're even supposed to connect anything in a way that makes sense. Sure, you could stretch things out and say, look here, look there. Yes, we always find models in the past that help us. But how often has this trend been broken? Look, it was broken here and it was broken here and somehow here it didn't even touch it anymore. And here there was a move, here there wasn't one and then it got stopped out again right away. Yeah, why is that? I can tell you it just doesn't make any sense because a trend line only shows you a movement pattern from a chart. But it doesn't show you where supply and demand are, where big players have actually entered the market and possibly have an interest in defending these price areas. And I say very clearly, possibly because we don't know that in advance. And that's why for me, it's very difficult to rely solely on such trend lines and claim that you can make money with them. Forget it, it doesn't work. It works as I said at the beginning, sometimes when a certain stability prevails and you add a bit of noise to it with so called fake breakouts and things like that. But in reality you'll never make money with pure trend line trading. Let's move on to the next chart. Let's think about it. Does it make sense to draw a trend line over the tops? Then maybe it just goes off into nowhere. Does it make sense to draw it over the closing prices? Then we have to cut it off a bit here and leave that one. It's all nonsense.

And down here, for example, we take several closing prices and then the market goes back up anyway. Oh, right now it touches my trend line. Or even better, we use an indicator, an rsi. Look, it was oversold here and that's why the market is going up again. Now let me tell you something. Now suddenly there's news that's causing the market to run up like this. No idea. Interest rates are reduced to zero.

And you think that because you don't have a deep understanding of what can really happen, you're constantly taking short positions up here because the market will come back to the rsi. It's overbought. I can tell you what happens then. And now comes the best part. Then some people even average down their positions and make them bigger because they want to be right.

They're not right for three days straight and then their account is wiped out. And I can tell you, I used to do that kind of crap too, because I had absolutely no idea how markets really work.

Let's take a look at some setups.

Some kind of bullish harami cross, the Super Doji. Yeah, those kinds of patterns, sure. Maybe they work sometimes. And if you use them in the right places, it might even be that they have a reason to exist there. But does that reason to exist prove that it's a great setup? Certainly not. You really have to distinguish very carefully between those setups that are truly counter trading setups. These are setups that are clearly trend following in nature.

Setups that are quite possibly breakout setups. And if you've just thought through these three crucial decisions for yourself, if you've really delved deeper into these specific setups, then you'll undoubtedly realize that if you consistently keep looking for, say, the definitive breakout setup within a particular trading range, well then, good night. Oh, here was one. Wow, that's great. If I hadn't skipped that, I would have made some real money today. But after those three stop losses, I was feeling so bad and I was emotionally at rock bottom. That's how it is for many people.

But in reality, this setup appeared here because we previously had a very clear movement and a balance that basically said funds over and underneath that. If we look at the time, yes, there was a news release 2:30pm.

And that led to such an accelerated movement. But definitely not this setup appearing out of nowhere. I'll show you in a moment which setups could be interesting for you. Let's take it a step further. Support and resistance levels. So resistances and supports. So when do you use them and how are they? Cool. Let's take this one here. Wow. This spike. That was a fake breakout. And down here, look. It came back to that level again. Oh. Or did it actually come back to that level? Which one was it that we should have taken? Damn. Here it broke through. We got stopped out because we held onto our positions since we had lower lows. We were in a downtrend. Yeah. Do you notice something? It's all rubbish. You can't use it like that. It is essential to always combine the technical analysis concepts of support and resistance with the corresponding overarching global player logic. This integrated approach is crucial for a comprehensive understanding. Furthermore, it is important to identify which significant market participants or entities initiated that particular price movement or trend. Which groups of traders are responsible for a market not moving any further? Which groups of traders are making sure today that the market is standing still, or which groups of traders are making sure that the market is trending today. And if you first identify this crucial point specifically who is currently dominating the market with their significant influence, then you will also gain a much deeper understanding of where it all truly began. And that usually doesn't start where we think, oh, this is where things are exploding now, the big players are in the market. No, it actually starts much, much earlier, when active market participants are already doing various things that, if we think about it more deeply and comprehensively, provide us with crucial information about market turnover, about, for example, the price delta, or about precisely knowing which significant news is released at what specific time and how to accurately interpret it. Yes, that's how the big market operates, but only technically, as I'm showing you right now. Let's take it a step further. Let's take a look at what possibilities there are to maybe get a bit deeper insight into the market. Let's take market profiling, for example. Here, for instance, a beautiful profile after we had a great inside auction here, which actually should have allowed the market to continue balancing or not. No, under such a price range, things can explode. Oh, no, we have to merge them together. We have to create a picture out of it. We are talking about 1, 2, 3, 4, 5 pieces of crucial information that we process in the absolutely correct and precise order. However, do we truly know at this particular point in time whether major and influential players are genuinely interested in actively pushing the entire market significantly down? Or can we only refer to different price ranges and carefully observe, for example, if we genuinely get information here that there really is a significant surplus of selling activity, that it is truly dominated by sellers who are, for instance, through the observable speed of transactions, and then create a combination, how is it even truly possible for us to effectively enter into this particular trade? That's what you absolutely have to do. I can also look at the whole thing on a smaller scale on the daily chart and say, I only look at it during the times when the highest volumes are traded.

Who actually managed to get a short trade here and hold it all the way down to the closing price?

Who could have known or predicted with any real foresight that the market wouldn't turn bullish again at this specific juncture? Because it genuinely appears that after the trading day moved significantly lower here, experiencing a notable decline, we then observed and received a positive balance once more. No, we absolutely need to create combinations and strategically utilize dynamic setups and incorporate truly dynamic options so that we can find a significant opportunity for ourselves within this specific big price area to firmly latch onto the established tracks of the major influential big market players and then confidently stay and remain in the market with confidence and lead the entire position to its next truly smart, intelligent and optimal level. For example, a single print area like this one here. Yes, that's important because in the past aggressive players have acted there. But why does the market just move straight through it? All these questions come up and I want to tell you a bit more about them.

Let's take a look at how a market behaves when you look at it from a different perspective. Let's take the current DAX future, which told everyone this morning that it was going long.

Yes, but all of a sudden it didn't feel like going long anymore. So why is that? It's simply because we can easily refer to the comprehensive merged profiles that have been created. And up here we have a selling tale. It's not rocket science, but you have to know when it makes sense and when it doesn't. And we moved above yesterday's value area and then ran back into it. But how was the open range? Was it very large? Was it very small? What information does that give us? And now let's take it a step further and have a look.

There were large volumes up here. Yes, but why didn't the market keep rising then? Because there was no more momentum absorption took place and all of a sudden the market participants were able to show very clearly in the order book funds over. Do you combine it like that? Context, dynamic setup, and then also being able to really read the actual price movement. That's one way to make progress in day trading. There are also ways to look at the whole thing from a technical perspective. For example, you could say, look, today during the market opening phase, it was such that the market told me.

I'm going above here.

And that was the market opening phase.

And suddenly the breakout happened. Yeah. Now take a look. If we continue this whole story a bit, then we are only referring to the market opening. And suddenly we fall lower than the market opening range ever was and we get a fair price area.

But how can we now see if real momentum is developing here? Yes, for that we need to look deeper. And at exactly this crucial moment, we either truly need to be able to fully comprehend the entire situation through dynamic set, but unfortunately that particular moment is now firmly in the past, or we look at the moment itself and can observe how the market participants do their business in the order book. And there we can see how the big buyer suddenly gets eaten up. The impulse comes and there's a continuation. That's a combination that's really cool and I hope you enjoyed this and that. It also showed you a bit that there are definitely technical possibilities, but they have to happen in the right.

Who is dominating the market? Where was the market dominated? Which trader groups are currently active and when is the right time to use the dynamics to get a great entry?

That's an awesome sequence.