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THE CANDLESTICK TRADING BIBLE
Trading strategies and tactics
In the last chapters you learnt three important aspects of price action
trading:
The first aspect is the market trends:
you know how to identify the
market trend using multiple time frames analysis. You know how to
differentiate between trending markets, and range bounds markets.
And you understand how each market moves.
The second aspect is the level:
you learnt how to draw support and
resistance, and how to draw trend lines, this skill will help you better
enter the market in the right time.
The third aspect is the signals:
you have seen different candlestick
patterns, you understand the psychology behind its formation, and the
message they send you.
These three aspects which are the trend, the level, and the signal are
what we will use in our trading approach to make money trading any
financial market.
I mean
that when you open a chart, you will try to answer three
important questions:
1-What the market is doing?
Is it trending, consolidating, or is it a
choppy market?
If
it is trending, you know how to identify if it is an uptrend or a
downtrend.
If
it is a ranging market, you will see that it is trading horizontally
between two boundaries. And if it is a choppy market, you close your
chart and you stay away.
2-What are the most powerful levels in this market?
If the market is trending up or down, or it is ranging, you will try to find
the most important support and resistance levels.
