The candlestick trading bible

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THE CANDLESTICK TRADING BIBLE 
Let me give you an example, when you are driving your car, you don’t 
always drive the same way, if you are driving downtown, you try to 
drive slowly, because you know that driving fast can put your life or 
other’s life in danger 
But when you are driving in a highway, you’re driving style changes 
completely, because you know that you can drive fast. So, you always 
try to adapt your driving style to the appropriate situation. 
You have to do the same thing when you are trading the engulfing bar 
pattern, because all price action strategies we discussed before will 
not work in range bound markets, and you have to use the right 
techniques that fit these market conditions. 
Before talking about the right way to trade trendless markets, you 
have to be selective about trading range bound markets to protect 
your trading account, because not all sideways markets are worth 
trading. You have to know how to differentiate between sideways and 
choppy markets.
See the illustration below about choppy markets: 

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THE CANDLESTICK TRADING BIBLE 
As it is illustrated above, the market trades in a crazy way, we can’t 
identify major support levels and resistance. You have to stay away 
from these types of markets, otherwise, you will definitively damage 
your trading account. 
Trading the engulfing bar candle in range bound market is very simple, 
the first strategy is going to be about trading this price action pattern 
from major support and resistance levels like we see below: 

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THE CANDLESTICK TRADING BIBLE 
The second strategy is to trade the breakout of the range or to wait for 
the pullback. See the illustration below : 
The third strategy is to trade the false breakout of the major support 
or resistance level. 

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