The candlestick trading bible

104
THE CANDLESTICK TRADING BIBLE 
The illustration above shows us three trading opportunities, let me 
explain you how you can trade them successfully: 
1-The first one is a pin bar rejected from the support level, you can 
place a buy order after the pin bar closes, or you wait for the market 
to touches the 50% of the pin bar range. 
Your stop loss should be placed above the support level, and your 
profit target must be placed near the resistance level.
The risk reward of this trade is very attractive. 
2-The second trading opportunity occurs near the support level, you 
place a buy order after the close of the pin bar, and your stop loss 
should be below the support level. your profit target is the next 
resistance level. 

---

105
THE CANDLESTICK TRADING BIBLE 
3-The third setup is an obvious buying opportunity; as you can see the 
market was rejected from the support level and formed a pin bar to 
inform us that buyers are still there, and the market is likely to bounce 
from the support level. 
Trading from major key support and resistance levels is the easiest way 
to make money trading range-bounds markets, don’t never try to 
trade any setup if it is not strongly rejected from these areas. 
The second strategy is about trading in the direction of the breakouts 
of major key levels or waiting for the prices to retrace back to the 
breakout point and then you go long or you short the market.
See the example below: 

---

106
THE CANDLESTICK TRADING BIBLE 
The figure above illustrates a range-bound market, the price broke out 
of the support level and retraces back to the point of the breakout, 
and the formation of an obvious pin bar indicates a high probability 
signal to short the market. 
This is how professional traders trade ranging markets based on this 
price action signal.