Excerpt from an article by John Novak as adapted to the H2 Trading System

The Objective of Technical Analysis

Keep in mind that the purpose of technical analysis is NOT to be able to accurately identify every market twist and turn 100% of the time. While this may be the daydream of some analysts and most amateur traders, it is impossibility. Every method of technical analysis has limitations and, at times, will provide contradictory information. Unless the analyst, trader or investor is willing to accept that some times his or her analysis will not provide a confident opinion of the market position, which will result in not establishing a position, he or she is doomed to failure. There are methodologies that do give you an infinitely higher probability of being correct, and H2 Trading System is one of those methodologies when applied correctly to the market will give you a decisive edge in your trading.


Knowledge Creates Discipline

As a trader there are only three positions you may take at any one time: long, short, or out of the market. The out-of-the-market position is taken when the technical analysis does not recognize that the market does not have a high probability set up. A good disciplined trader will wait until his or her analysis recognizes the conditions that have a very high probability of success. If you want to be successful, so will you. Once you recognize that the purpose of technical analysis is to identify high probability trade set-ups, patience and discipline should follow. H2 Trading System when used properly will help you to define high probability, low risk set ups that will help you to reach your trading goals.