The candlestick trading bible

152
THE CANDLESTICK TRADING BIBLE 
sell the market near the resistance level, all probabilities will be in your 
favor. 
But the question is when to enter the market? And where to put my 
stop loss? 
If you enter the market aggressively before the breakout of the mother 
candle, and you put your stop loss above it, the market will take your 
stop loss and go in the predicted direction. 
See the illustration below: 
As illustrated above, big players hunt novice traders stops before 
pushing the market to go down, if your stop loss was near the 
resistance level, you would be out as well, if you don’t understand the 
reason why, it is simply because you were a victim of big players 
hunting stop strategy. 

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153
THE CANDLESTICK TRADING BIBLE 
If you are familiar with trading the inside bar false breakout, you will 
understand what happened in the market, and you will simply take 
advantage of this manipulation instead of being trapped by the 
market. See the example below: 
As it is illustrated above, the inside bar false breakout gave us a good 
selling opportunity. 
If you are able to identify this setup, and you understand the 
psychology behind it, there should be no reason not to get into the 
position. 
 
 
 
 
 

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154
THE CANDLESTICK TRADING BIBLE 
Trading inside bar false breakouts with Fibonacci retracements 
I don’t really know if you are familiar with this technical trading tool, 
however, I will try to show you how to use it in a simple and efficient 
way in combination with the inside bar false breakout. 
What you have to know is that in an uptrend or a downtrend, the 
market creates impulsive moves and pullbacks.
The Fibonacci retracement helps us highlight the most important 
pullbacks levels in the market. 
The best Fibonacci retracement levels that i personally use are the 
50% and 61% levels, according to my experience these levels are the 
most important areas that experienced trader watch in their charts. 
Our strategy is simple, we select the technical tool on our chart, and if 
the market moves strongly, we wait for retracements, if the pullback 
reaches 50% or 61 % levels, we need just a price action signal to 
confirm our entry. See the example below: 

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