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THE CANDLESTICK TRADING BIBLE
As you can see, the top down analysis works, the pin bar candlestick
signal didn’t work, because the weekly resistance level was a powerful
turning point that reversed the market direction.
If you want to trade price
action based on one-time frame, i highly
recommend you to stop trading because you will end up losing your
entire trading account, and you will never become a successful trader.
Trading counter trends is very profitable as well, but without the top
down
analysis, you will put yourself in troubles.
Let me give you another example to show how you can trade counter
trends using your price action trading setups in combination with the
top down analysis concept.
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THE CANDLESTICK TRADING BIBLE
As
you can see in the chart above, price are at a weekly resistance
level, buyers were rejected twice from this level which indicates that
the market is at a hot a point and it is likely to reverse.
What you can do as a price action trader is to switch to the daily time
frame to look for a selling opportunity.
If you can find a price action setup near the weekly resistance level on
the daily time frame, this is going to be a high probability setup to take
into consideration.
See the example below: