The candlestick trading bible


THE CANDLESTICK TRADING BIBLE



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146
THE CANDLESTICK TRADING BIBLE 
Tips on trading the inside bar price action setups 
1-Trade the bigger time frames
I’m not against trading lower time frames, you can trade this setup on 
5 minutes time frame using other technical indicators to filter your 
signals and take just high probability setups. 
But you have to be an experienced trader, if you are beginner
i recommend you to stick with trading this signal in bigger time frames 
such the daily and the 4-hour time frame. 
Trading this setup on lower time frame will increase your chance to 
overtrade the market and take low probability price action signals. And 
this is the quickest way to blow up your trading account. 
If you focus just on bigger time frames, this will allow you to set and 
forget your trade instead of being emotionally controlled by the 
market. 
2- Trade the dominant trend
You should start trading inside bars in line with the direction of the 
market, especially in a strong bullish or bearish trend, but don’t never 
try to trade it against the trend if you are a newbie. 
When you feel like you master trading this pattern with the trend, you 
can move to trade range bound markets, and counter trends. 
3- Trade only from key levels
Remember that not all inside bars are worth your hard-earned money; 
there are specific locations where this setup works great, so make sure 
that your signal is located in a key level in the market. 
4- Find different factors of confluence
Trading with confluence means combining different signals to make 
the best trading decision. 


147
THE CANDLESTICK TRADING BIBLE 
To trade using this concept you need to look for a point in the market 
where two or more levels are coming together and wait for an obvious 
signal to form. 
This trading method will give you confidence in your trading approach 
and it will allow you to avoid over-trading. 

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