The candlestick trading bible

73
THE CANDLESTICK TRADING BIBLE 
On the daily chart, we have a clear pin bar candlestick pattern that 
indicates a bullish signal. 
if you focus just on one-time frame to make your trading decision, 
You will buy the market, because there is a clear pin bar signal.
But if you analyzed the weekly chart, you would know that there is a 
very powerful key level that will stop the market from going up.
So, it’s better to think of selling the market if there is a clear signal 
rather than to buy it.
Look at what happened next: 

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74
THE CANDLESTICK TRADING BIBLE 
As you can see, the top down analysis works, the pin bar candlestick 
signal didn’t work, because the weekly resistance level was a powerful 
turning point that reversed the market direction. 
If you want to trade price action based on one-time frame, i highly 
recommend you to stop trading because you will end up losing your 
entire trading account, and you will never become a successful trader.
Trading counter trends is very profitable as well, but without the top 
down analysis, you will put yourself in troubles.
Let me give you another example to show how you can trade counter 
trends using your price action trading setups in combination with the 
top down analysis concept. 

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75
THE CANDLESTICK TRADING BIBLE 
As you can see in the chart above, price are at a weekly resistance 
level, buyers were rejected twice from this level which indicates that 
the market is at a hot a point and it is likely to reverse. 
What you can do as a price action trader is to switch to the daily time 
frame to look for a selling opportunity.
If you can find a price action setup near the weekly resistance level on 
the daily time frame, this is going to be a high probability setup to take 
into consideration.
See the example below: 

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