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Website META Keywords:The Candlestick Trading Bible
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Website META Description:This New Ebook Reveals The Most Powerful Trading System In History That Was Used By Munehisa Homma.the God Of Markets In His Day.
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Why the Candlestick Trading Bible is the Simplest Method Ever?
The Candlestick Trading Bible is based on the T.L.S. method, which is one of the most important principles in the Candlestick Trading Bible approach.The T.L.S. method stands for Trend, Level, and Signal. In other words, when you open your charts, you will look for three important elements:
The trend: you will identify the market trend, and decide whether it is an uptrend, a downtrend, or ranging.
The level: you will find the key levels in the market, which can be support and resistance, trendlines, supply and demand zones …
The signal: you will identify a price action signal such as a pin bar, inside bar, or an engulfing bar…
When you have all three of these simple elements in alignment, then you have the perfect trading opportunity.
Look at the chart example below to see how you can find high probability setups using the T.L.S. trading method.
As you can see, you don’t need a magic indicator to make a profitable trading decision. What you need is to find three important elements:
In the chart above, the trend is up. This means that you will look to buy in the market. the level is the support area, and the signal is an inside bar setup. One or two trades a week like this is quite enough to make a good monthly income.
Look at how you can enter and exit this trade in the chart below:
As you can see the formation of the inside bar setup is a powerful signal to enter the market. The inside bar formation means that the market is consolidating. The breakout of the pattern means that the market decided to continue in the same direction. What you must do to make money is to follow the market direction.
Your entry is going to be the breakout point, and your stop loss is going to be placed under the tail of the mother candle, which is the larger candle before the inside bar, and the profit target is the next level. Easy, right?
The second concept that characterizes the Candlestick Trading Bible is trading with confluence, which means that you will learn how to find confluent factors that support your trading decisions. This will help you take only high-probability setups in the market and ignore low-quality ones.
Look at the chart below to understand how we make trades based on confluence:
The chart above shows how trading with confluence can lead us to identify setups with more than a 98% success rate. As you can see in the chart above, there are five factors of confluence that support our decision.
The first factor is the downtrend, which is a powerful signal to sell the market. Don’t ever try to buy a market in a downtrend. Most successful traders say “the trend is your friend†and this is exactly what I teach in the Candlestick Trading Bible.
The second factor is the level at which a support level becomes a resistance level. This area is the best place for you to wait for a price action signal to form.
The third factor is the pin bar candlestick that forms after the retracement back to the resistance level. It indicates that the retracement phase is over, and that the beginning of an impulse move is going to happen.
The fourth confluence factor is the 21-period simple moving average that acts as a dynamic resistance level and rejects the pin bar signal.
The last factor of confluence is the 50% and 61% Fibonacci retracement levels. These Fibonacci levels are considered to be the most powerful levels in the market.
If you think in terms of confluence as I teach in my Candlestick Trading Bible, you will develop a winning trading mindset, and your brain will get used to identifying only high-probability setups that lead to big profits.
Look at the same chart below to see how many pips you can get just by applying these concepts:
As you can see the market goes down 122 pips, because all the factors say that the market will go down. Imagine that you were in this trade using my Candlestick Trading Bible approach, and you decided to risk 10 dollars for ever