These two candles look absolutely the same. They have a long bearish wick and a head. The difference between these two candles, though, is that the Hammer is at the end of a bearish trend indicating a potential reversal,
while the Hanging Man is usually found at the end of a bullish trend, signaling an upcoming reversal.
The chart shows a bearish candle followed by a hammer and a rapid price increase.
This is the H4 chart of EUR/USD.showing how a Hammer Candle preceded a price increase of about 265 pips in
less than 3 days.
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A range bound market is one in which price bounces in between a specific high price and low price.
The high price acts as a major resistance level in which price can’t seem to break through.
When you trade the range bound market, you trade only from the boundaries, I mean from major support and resistance, don’t never trade inside the range.
As you can see in the illustration above, the market is trading between support and resistance,
if you trade inside the range, you will lose money, try always to mark major support and resistance levels,
and wait for a price action signal to occur. it can be a pin bar, inside bar, engulfing bar, a doji ,
or any price action signal that you know .
WHY PIN BARS OCCURS NEAR THE RESISTANCE AND SUPPORT LEVELS IN RANGING MARKETS?
In the example above the first pin bar was rejected from the resistance level, and made a false breakout
of this level, this indicates that sellers trapped buyers by showing them that price broke out of the resistance level,when buyers enter the market, sellers pushed the market lower and trap buyers in what we call “ bull trap “).I talked about this in details in the candlestick trading bible.
The same thing happens to the second pin bar, and if you can look at the support level, you will see that buyers trapped seller by creating a false breakout of this level.
Trading is all about traps, if you don’t understand the game, you will never make money in the market,
in the candlestick trading bible, I show to traders how to identify these traps, and how to take advantage
of them when they occur in the market.
The examples and knowledge I share with you here don’t represent more than 0.5% of what you can learn in
the candlestick trading bible. This eBook covers the most powerful trading strategies in history.
If you are serious about this business, and you want to take your trading to the next level,
I highly recommend you to get your copy as soon as possible , because the eBook is not going to be up
and available for so long.
When I post this type of posts a lot of people tell me that this is off-topic and it’s not related to forex.
Many still have to understand the importance of the psychological part of trading✔️ be thankful and always think positive, good things will come
44 7102 days ago
36 9547 hours ago
Just an educational post to help on where to enter with breakers, cuz not all “breakers” are breakers. Also the “rallies up/down part” is for when price rallies and takes out an important level of Liquidity( Previous Highs/Lows and Double tops/bottoms). What you consider important is up to YOU, continue learning and grinding 💪🏾