I have not yet introduced any of my trading strategies.

It�s
important to be patient until you reach Chapter 6 where I explain in detail my
preferred strategies. I am not recommending that every time you see a Higher
Highs and Higher Lows you should go long, and every time you see a Lower
Lows and Lower Highs you should go short. I am not recommending that at all.
It�s important to recognize these patterns, but how to successfully utilize them
for a successful trade will be discussed in later chapters. Remember, a successful
trade requires the analysis of many indicators and parameters, and price action
and chart patterns are only one of those.
In the next section I will review some successful and some not so successful
trades in order to demonstrate how to make use of this knowledge to manage
your trades. Every day, I post the results of my own trading in my YouTube
channel, along with an analysis of the strategies I traded as well as how the price
action unfolded on the stocks I considered in play that day.
Engulfing Patterns
Another powerful chart pattern that I look for on 5-minute charts is the so-called
�Engulfing Pattern�. Bullish and Bearish Engulfing Patterns are one of my
favorite candlestick charting patterns. Similar to Higher Highs and Higher Lows,
Engulfing Patterns involve two candlestick bars, not one.
Bullish Engulfing Patterns form when a candlestick bar opens lower than the
previous candlestick�s close and closes higher than the previous candlestick�s
open, as shown conceptually in Figure 5.7. The pattern begins with a candlestick
bar that has a small body and is follow