An inside bar pattern doesn’t come around often. If you ask, why is it? So the answer is, it’s mostly due to the fact that this particular strategy requires a trend that is strong but not exhausted.
As markets spend most of their time consolidating or ranging, so finding a favourable inside bar setup within a trending market can be a difficult task. Now, you might be having a question that what is inside the bar chart pattern?
What is Inside Bar Pattern?
As the name suggests, an inside bar chart pattern engulfs the inside of a large candle, some call it a mother bar. It’s a pattern that forms after a large move in the market and represents a period of consolidation.
The inside bar pattern can be a very powerful price action signal if you understand how to trade it properly. Matching lows and highs are acceptable, however, the inside bar’s range must not be outside of the mother candle by even 1 point.
Here are some facts about Inside Bar Pattern-
Facts about Inside Bar Pattern
As markets spend most of their time consolidating or ranging, so finding a favourable inside bar setup within a trending market can be a difficult task. Now, you might be having a question that what is inside the bar chart pattern?
What is Inside Bar Pattern?
As the name suggests, an inside bar chart pattern engulfs the inside of a large candle, some call it a mother bar. It’s a pattern that forms after a large move in the market and represents a period of consolidation.
The inside bar pattern can be a very powerful price action signal if you understand how to trade it properly. Matching lows and highs are acceptable, however, the inside bar’s range must not be outside of the mother candle by even 1 point.
Here are some facts about Inside Bar Pattern-
Facts about Inside Bar Pattern
- Inside bar pattern within the trading range (or shadow) of the preceding bar.
- It is at least a two candlestick formation
- Mother candlestick can be either bullish(green) or bearish(red)
- The inside bar chart pattern can be bullish or bearish
