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THE CANDLESTICK TRADING BIBLE
How to trade the false breakout of the inside bar candlestick
pattern?
Have you ever placed an order with confidence
thinking that the
market is going to go up, but price hints your stop loss before it starts
turning out to your predicted direction?? I have been a victim of stop
hunting, and i was very disappointed, but that happens several times
in the market.
Banks and financial institutions know how we trade the market, they
know how we think, and where we put
our stop losses and profit
targets, this is the reason why they could easily take money from us.
One of the most famous strategies that big players use to take money
from novice traders is called stop loss hunting strategy.
This strategy consists of driving prices to a certain level where there
are
massive stop loss orders, and the purpose is to create liquidity,
because without liquidity, the market will not move.
Once stop losses are hunt, the market goes strongly in the predicted
direction.
The interaction between big participants
and novice traders create
repetitive patterns in the market,
one of the most important
candlestick pattern that illustrates how big financial institutions
manipulate
the market is
the inside bar false breakout pattern
.
Your understanding of this repetitive setup and your ability to detect
it on your charts will help you better exploit it to make money instead
of being a victim of market makers and banks manipulations.
This price action signal is formed when price breaks out from the inside
bar pattern and then quickly reverses to close within the range of the
mother bar.
See the illustration below:
