The Creation of a Strategy

Think about all the ingredients in your kitchen. You don’t need to use every one to make a delicious meal. Yet you need to learn the use case of every ingredient to know how to use it.

Two people can enter this kitchen and make 2 different but delicious meals using similar ingredients but not exactly the same.

So what’s my point here?

Tools of technical analysis are just ingredients to make a strategy.

Supply demand zones, support resistance areas, order blocks, fair value gaps, market structure, liquidity, moving averages, rsi, Elliot waves, Wyckoff phases, candle patterns, etc

These are all just tools. You do not need to use all of them to formulate a strategy. Each tool gives you an indication of a trade going in your favour or not.

Study all the tools but in the end the value of learning complexity is understanding the beauty of simplicity.

A great chef is a great chef not because of how many ingredients they use but in how beautifully they craft a dish using a few simple ingredients. But they got to that point by first understanding complexity.

So choose a few ingredients AKA tools of technical analysis and become a master at executing trades using them. When you only focus on 3 things you become an expert at identifying setups thru the lens of those 3 things.

So maybe you choose moving average, supply demand zones and liquidity. That’s fine. But everyday when you sit on the chart to trade, only analyze the market thru the lens of those 3 tools. You will start identifying nuances of a setup with those tools.

You have to resist the urge to then add another tools like FVG gaps for example just because a trade lost and you need to justify it.

You will never achieve consistency if your method of analysis is not simple and consistent.