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Inside Bar

Tips and Tricks on How to Trade the Inside Bar Candlestick Tips and Tricks on How to Trade the Inside Bar Candlestick Formation What is an Inside Bar? An Inside Bar is a two-bar price action pattern where the second bar (the inside bar) is completely contained within the high and low range of the first bar (the mother bar). This often signifies a period of consolidation or indecision. Trading the Inside Bar: Breakout Strategy: Look for a strong breakout above the mother bar's high for a long position, or below the mother bar's low for a short position. Volume Confirmation: Increased volume on the breakout candle can strengthen the signal. Stop-Loss Placement: Consider placing your stop-loss at the opposite end of the mother bar. Risk-Reward Ratio: Ensure a favorable risk-reward ratio before entering a trade. False Breakouts: Be aware of false breakouts, especially in ranging markets. Combine with Other Indicators: Use the inside bar in conjunction with other technical analysis tools for improved accuracy. Remember, the inside bar is a powerful tool, but it's not a foolproof strategy. Always practice risk management and consider using it as part of a broader trading plan. #tradingview #insidebar #priceaction #forex #stocks #tradingtips
Education
by Forex_Wealth_Factory
The Power of Candlestick Encapsulation in Trading: Utilizing theTrading is a captivating and intricate field that demands a profound understanding of financial markets, investment strategies, and technical analysis. Among the many techniques employed by traders, candlestick encapsulation is one that can prove to be particularly powerful. In this article, we will explore the concept of candlestick encapsulation and how one can harness the 50% of the first candle's length as a potential support or resistance level. What Is Candlestick Encapsulation? Candlestick encapsulation, also known as an "inside bar," is a price pattern that occurs when a subsequent candle develops within the boundaries of the preceding candle. In other words, the price range of the second candle is entirely contained within the range of the first candle. This pattern can appear on any time frame, from daily candles to one-minute candles, and is often used by traders to identify potential turning points in the markets. How to Identify Candlestick Encapsulation? To identify candlestick encapsulation, follow these steps: * Examine the First Candle: Begin by observing the most recent candle on your price chart. This will be the "mother candle."
 * Take a Look at the Next Candle: Next, examine the candle that follows the mother candle. This candle should have a price range that is completely contained within the range of the mother candle.
 * Confirm the Pattern: To confirm candlestick encapsulation, the second candle must close within the range of the mother candle. Using the 50% Level as Support or Resistance Now that we understand what candlestick encapsulation is, let's explore how to leverage the 50% of the first candle's length as a potential support or resistance level. * Calculate the Length of the First Candle: Measure the length of the mother candle from its high to its low.
 * Calculate 50% of the Length: Now, calculate exactly 50% of this length. You can do this by adding the high and low of the mother candle and dividing by two.
 * Draw the Horizontal Line: Plot a horizontal line on your price chart at the level you calculated as 50% of the mother candle's length.
 * Observe Price Behavior: This horizontal line represents a potential support level if prices move below it or a resistance level if prices stay above it. Observe how prices react when they reach this level. Interpretation and Strategy The use of the 50% level of the mother candle's length as support or resistance can be applied in various trading strategies. Here are some important considerations: * Breakout Strategy: If prices break above the 50% level, there may be a potential bullish breakout. In this case, traders may look for buying opportunities.
 * Pullback Strategy: If prices return to the 50% level after a breakout, this could be an opportunity to enter positions in the direction of the prevailing trend.
 * Stop Loss and Take Profit: Traders can use the 50% level as a reference point to place stop-loss or take-profit orders. Conclusion Candlestick encapsulation is a technical analysis technique that can provide valuable insights into potential turning points in financial markets. By using the 50% level of the mother candle's length as support or resistance, traders can add another tool to their trading toolkit for making informed trading decisions. However, it is important to remember that no technique is foolproof, and trading always involves a degree of risk. Therefore, it is advisable to combine this technique with careful risk management and a solid understanding of financial markets.
OANDA:XAUUSDEducation
by AleSaira
Trade Review: How I Traded $PINS, $ZM, $CRWD, $UNH, $SPCE W/ EntIn this video I will reviewing trades I took on September 2-3, 2021 going full in depth explaining how I traded : $PINS, $ZM, $CRWD, $UNH, $SPCE showing you guys my entries how I put it together with other confluences such as support and resistance. Traded tickers with a new strategy I been testing with Inside Candles Credit: TW for his indicator and his strategy! Traded these tickers using my knowledge of technical Analysis , sharing my levels: Support & Resistance , my trendlines , Fibs, Waves, Price Action, Inside Bars, Channels , Emma's, Opening Range Breakout and prior experienced , while providing both bullish & bearish scenarios for you to be able to understand my analysis and wait for confirmation as always! Want to see more content like this? Make sure to Like and Subscribe!
NYSE:PINSEducation
by Raulf-m
1
Trade Review: How I Traded $NFLX, $BBIG, $ TSM, $WISH,+ LOTTO FRIn this video I will reviewing trades I took on August 27, 2021 going full in depth explaining how I traded $NFLX, $BBIG, $ TSM, $WISH Inside Day, as well explaining my swings I took on the banks and my reasoning behind it .As well the Breakdown trade I posted on twitter and how they worked out and the result of them Traded tickers with a new strategy I been testing with Inside Candles Credit: TW for his indicator and his strategy! Going in Full in depth with my entry, Exit thought process and how I analyze my Nasdaq chart Traded these tickers using my knowledge of technical Analysis , sharing my levels: Support & Resistance , my trendlines , Fibs, Waves, Price Action, Channels , Emma's, and prior experienced , while providing both bullish & bearish scenarios for you to be able to understand my analysis and wait for confirmation as always! Want to see more content like this? Make sure to Like and Subscribe!
NASDAQ:PTONEducation
by Raulf-m
Trade Review: How I Traded $BIDU + SET UPS RECAP!! & How I am coIn this video I will reviewing trades I took on August 26, 2021 going full in depth explaining how I traded $BIDU for a nice 20% Day trade with the full breakdown Inside Day, as well explaining my swings I took on the banks and my reasoning behind it .As well the Breakdown trade I posted on twitter and how they worked out and the result of them Traded tickers with a new strategy I been testing with Inside Candles Credit: TW for his indicator and his strategy! Going in Full in depth with my entry, Exit thought process and how I analyze my Nasdaq chart Traded these tickers using my knowledge of technical Analysis , sharing my levels: Support & Resistance , my trendlines , Fibs, Waves, Price Action, Channels , Emma's, and prior experienced , while providing both bullish & bearish scenarios for you to be able to understand my analysis and wait for confirmation as always! Want to see more content like this? Make sure to Like and Subscribe!
NYSE:BACEducation
by Raulf-m
Trade Review: How I Scalped $MARA+ Reviewing Stream Set ups!In this video I will reviewing trades I took on the first week of August 9, 2021 going full in depth explaining how I traded these tickers with a new strategy I been testing with Inside Candles Credit: TW for his indicator and his strategy! Covered $MARA for a nice 10% scalp, then reviewing the set ups from Sundays Stream, then giving out some set ups for this week! Traded these tickers using my knowledge of technical Analysis , sharing my levels: Support & Resistance , my trendlines , Fibs, Waves, Price Action, Channels , Emma's, and prior experienced , while providing both bullish & bearish scenarios for you to be able to understand my analysis and wait for confirmation as always! Want to see more content like this? Make sure to Like and Subscribe!
NYSE:NIOEducation
by Raulf-m
1
Trade Review: How I been making consistent 80% returns W/ PROOF!In this video I will reviewing trades I took on the first week of August. going full in depth explaining how I traded these tickers with a new strategy i been testing with Inside Candles Credit: TW for his indicator and his strategy! Traded these tickers using my knowledge of technical Analysis , sharing my levels: Support & Resistance , my trendlines , Fibs, Waves, Price Action, Channels , Emma's, and prior experienced , while providing both bullish & bearish scenarios for you to be able to understand my analysis and wait for confirmation as always! Want to see more content like this? Make sure to Like and Subscribe!
NYSE:SQEducation
by Raulf-m
IDF Play - Fading a daily inside barSTATEMENT This publication aim to explain as detailed as possible the IDF play strategy. To do so, we will analyse USDCAD chart and the inside bar that was printed on 22-04-2021. RATIONALE Why trading the failure of an inside bar? It's commonly known that retail traders will identify an inside bar as a reversal candle. Institutions and big players know how retail traders play these kind of candles and will most likely fade them. Also, before directly trading this technique, please backtest it through different time period (what could have workd in 2020 might not work anymore in 2021 as it's well known that market behaviour can change) and different currencies (an high strike rate with EURUSD doesn't mean it will work with GPBUSD for example). I would consider it as an edge it win rate is above 60% adn the ratio is in average above 1% ROI. INSIDE BAR What's an inside bar? It is a candle in which the high to low range is smaller than the prior candle; i.e., the high is lower than the previous bar's high, and the low is higher than the previous bar's low . THE PLAY First of all, we identify an inside bar on the daily time frame: In this particular trade, our inside bar can also be identified as a Doji candle (another reversal candle), reinforcing the retail trader's sentiment that we are about to witness a trend reversal (meaning that most of them will be placing an order to go long with a stop loss below the wick of the candle). Additionally, if we check the prior day we notice that price printed an Outside bar (or Engulfing candle), confirming our bias that we are most likely to find opportunities to go short. Next step is to go down to the hourly time frame and look for a significant leven from which we can short. So far in below screenshot we have identify a significant support level where price was rejected 6 times. As we would like to find an opportunity to go short, we need to wait for the price to break through this level. Now, as we have short bias, we need to wait for the price to break through that support level, so we can consider placing an order (sell limit). With 6 touches on the support level, market is telling us that we have a strong level, having saying that, we won't need any further confluence to look for entry after the breakout. After breakout is confirmed (1) and there is no an immediate pullback (few candles between breakout and pullback to significant level) we can place our order (in this case, sell limit). We do not place our stop loss above the latest lower high; we play it safe and place it at 1.25104 (the prior lower high). Take profit is placed at a weekly level we have identified we do believe can represent a valid target. THE RESULT
Education
by cmacquet
2
GBPJPY 15M SCALPING US SESSION INSIDE CANDLE BREAKOUT STRATEGYINSIDE CANDLE STRATEGY What is an Inside Candle 1. Previous candle engulfs next candle. 2. 2nd candle high is lower that 1st engulfing candle. 3. 2nd candle low is higher than 1st engulfing candle. INSIDE CANDLE METHOD 1. Incoming Trend 2. Inside Candle – Opposite Color 3. Enter Break of Engulfing Larger Candle Inside Candle method is a great short term consolidation indicator. If your trade plan contains breakouts and consolidation then this method is for you. This is a great way to find smaller consolidations quicker which will give you more trades on whatever time frame you want to look. On a daily chart it may take weeks for a consolidation pattern to form. An Inside candle represents a pause, consolidation or compression in the market after a big move. Often you will also see reduced volume on the inside candle. Inside Candle method is a pause or a reversal of the trend . So it is more effective if there is an incoming trend. Enter a break of the larger engulfing candle in the direction of the break. Enter with a Stop Order a few pips above or below breakout level. Which trades you take is a matter of preference. Some like reversal trades or trend following trades. Scalping inside candle pattern doesn't matter what direction you may go. Trend following you will want to see this in context of a larger trend. Take all the trade setups and just shut down the ones that don't preform. Trade Management: Enter 2 trades Stop Loss is 1.5 x ATR for both trades First Take Profit is 1 x ATR for 1st trade 2nd trade there is no take profit. When 1st TP is hit move 2nd trades SL to breakeven. Let profit run on 2nd trade by following/trailing SL. If a candle closes back inside the larger engulfing candle close down trade. Watch for a setup for the next breakout.
Education
by Tradingstrategyguides
EURUSD 1H INSIDE CANDLE METHOD BREAKOUTINSIDE CANDLE STRATEGY What is an Inside Candle 1. Previous candle engulfs next candle. 2. 2nd candle high is lower that 1st candle. 3. 2nd candle low is higher than 1st candle. INSIDE CANDLE METHOD 1. Incoming Trend 2. Inside Candle – Opposite Color 3. Enter Break of Engulfing Larger Candle Inside Candle method is a great short term consolidation indicator. If your trade plan contains breakouts and consolidation then this method is for you. This is a great way to find smaller consolidations quicker which will give you more trades on whatever time frame you want to look. On a daily chart it may take weeks for a consolidation pattern to form. Inside candle represents a pause, consolidation or compression in the market after a big move. Often you will also see reduced volume on the inside candle. Inside Candle method is a pause or a reversal of the trend . So it is more effective if there is an incoming trend. Enter a break of the larger engulfing candle in the direction of the break. Enter with a Stop Order a few pips above or below breakout level. Which trades you take is a matter of preference. Some like reversal trades or trend following trades. Scalping in doesn't matter what direction you may go. Trend following you will want to see this in context of a larger trend. Take all the trade setups and just shut down the ones that don't preform. Trade Management: Enter 2 trades Stop Loss is 1.5 x ATR for both trades First Take Profit is 1 x ATR for 1st trade 2nd trade there is no take profit. When 1st TP is hit move 2nd trades SL to breakeven. Let profit run on 2nd trade by following/trailing SL. If a candle closes back inside the larger engulfing candle close down trade. Watch for a setup for the next breakout.
Education
by Tradingstrategyguides
Inside Bar Forex Trading StrategyInside Bar Forex Trading Strategy-Learn How to Trade Inside Bar The inside bar forex trading strategy can be classified as a simple price action trading strategy that even new traders, as well as veteran forex traders, can use. WHAT IS AN INSIDE BAR? If you are wondering what an inside bar is, then here’s an explanation. -the inside bar is a 2 candlestick formation -the first candlestick that forms may be called the “mother candlestick” -the second candlestick that forms after the “mother candlestick” is engulfed completely within the shadows of the mother candlestick. That second candlestick is called the “inside bar. Here’s an example of how inside bar candlestick formation looks like: Notice on the chart above: -the inside bar is completely engulfed within the shadows of the highs and lows of the preceding bar (or candlestick). -it is a two candlestick formation -the preceding candlestick can be either a bullish or bearish bar (candlestick). -the inside bar itself can be a bullish or bearish candlestick. WHY INSIDE BARS FORM? Inside bars, when they form to show a time period of market consolidation. This market consolidation can be due to: -a time of indecision as traders are figuring out if they are going to buy or sell or not. -a period of low trading activity (low trading volume). -it can also be a time where the bulls and bears of market forces are also almost of equal strength and each really doesn’t know what direction to take on their trades. Where Do Inside Bars Form? Well, inside bars can form anywhere. But the inside bars that are of significance that many traders take notice of must form on these level(areas) listed below: -support -resistance -pivots -fibonacci levels -trend line touch areas It's best to only pay attention to inside bars that form in the price levels listed above. INSIDE BAR FOREX TRADING STRATEGY RULES: Selling Rules: - the market must be in a downtrend. - when you see an inside bar form, then place a sell stop order anywhere from 2-3 pips below the low of the inside bar. You do that soon as that that inside bar closes. - For Stop loss, place it anywhere from 5-10 pips above the high of the inside bar. Buying Rules: The buying rules for the inside bar trading strategy are just the exact opposite of the selling rules. Here they are: - the market must be in an uptrend. - when you see an inside bar form, then place a buy stop order anywhere from 2-3 pips above the high of the inside bar. You do that soon as that that inside bar closes. - For Stop loss, place it anywhere from 5-10 pips below the low of the inside bar. Normally INSIDE BAR will give us two trade 1. the first trade is to trade at the breaking out 2. the 2nd trade is to trade after the breakout + pullback the first trade normally can quickly take you to 1:1 risk/reward the 2nd trade can give you a higher R/R EXAMPLE:
FX:XAUUSDEducation
by FxAzerbaijan
1
Education post 3/100 – How to trade inside bar?What is an Inside Bar ? The inside bar is a two bar candlestick pattern, which indicates price consolidation. In order to confirm this pattern you need to see a candle on the chart, which is fully contained within the previous bar. In this manner, the inside bar candle should have a higher low and a lower high than the previous candle on the chart. The Inside Bar is fairly easy to spot on the chart, but using an Inside Bar indicator can assist the trader in quickly finding these patterns on their price chart as well.  Psychology behind the Inside Bar Since the inside candle has a lower high and a higher low than the previous candlestick on the chart, this indicates that the currency pair is consolidating. Why is it consolidating? It is consolidating because the bulls cannot manage to create a higher high and at the same time the bears fail to create a lower low. As such, there is not sufficient buying or selling pressure to break the previous bar’s high or low. Entering an Inside Bar Trade When the price action completes an inside candle on the chart, you should mark the low and high of the Inside Bar consolidation range. These two levels are used to trigger of a potential trade. Remember, the inside candle clues us in to the eventual breakout and likelihood of a continuation outside the range in the direction the break, however, it doesn’t give us information about the direction of the breakout through the range, prior to the actual move. In simple terms, if the price action interrupts the range upwards, then you should go long. If the price action breaks the range downwards, then you should trade the short side. Stop Loss when Trading Inside Bars The usage of a stop loss order is recommended for any Forex trading strategy. The inside bar trading system is no different. You should always put a stop loss when trading inside candles. But where? The proper location of your stop loss is slightly beyond the inside candle’s top, or bottom, depending on the direction of the break. In other words, if the inside range gets broken upwards, you can buy the Forex pair and place a stop loss order right below the lower candlewick of the inside candle. The same is in force for bearish breakout of the inside range, but in the opposite direction. In this case you could sell the Forex pair and you put a stop loss right above the upper candlewick of the inside bar. Take Profit on Inside Bar Setup Projecting the potential move with Inside Bar Breakouts can be challenging. Often Inside Bar trades can lead to a prolonged impulse move after the breakout, so employing a trailing stop after price has moved in your favor is a smart trade management strategy. Along with this, I typically like to use a fixed Take Profit target at 1.5:1 or 2:1 reward to risk ratio to scale out of inside bars trades. In this manner, if the stop loss is 80 pips from the entry, then the minimum target would be located at 120 pips distance. Let’s take a closer look at the inside bar pattern on the Forex chart upside.
Education
by GroundStoneHoldings
EDUCATION INSIDE BAR FOREX TRADING STRATEGY RULESNormally INSIDE BAR will give us two trade 1. the first trade is to trade at the breaking out 2. the 2nd trade is to trade after the breakout + pull back the first trade normally can quickly take you to 1:1 risk/reward the 2nd trade can give you a higher R/R WHAT IS AN INSIDE BAR? If you are wondering what an inside bar is, then here’s an explanation. - the inside bar is a 2 candlestick formation - the first candlestick that forms may be called the “mother candlestick” - the second candlestick that forms after the “mother candlestick” is engulfed completely within the shadows of the mother candlestick . That second candlestick is called the “inside bar. - the preceding candlestick can be either a bullish or bearish bar ( candlestick ). - the inside bar itself can be bullish or bearish candlestick . WHY INSIDE BARS FORM? Inside bars, when they form show a time period of market consolidation. This market consolidation can be due to: - a time of indecision as traders are figuring out if they are going to buy or sell or not - a period of low trading activity (low trading volume ) - it can also be a time where the bulls and bears of market forces are also almost of equal strength and each really don’t know what direction to take on their trades. Where Do Inside Bars Form? Well, inside bars can form anywhere. But the inside bars that are of significance that many traders take notice of must form on these level(areas) listed below: - support - resistance - pivots - Fibonacci levels - trend line touch areas Its best to only pay attention to inside bars that form in the price levels listed above. INSIDE BAR FOREX TRADING STRATEGY RULES Selling Rules: - the market must be in a downtrend. - when you see an inside bar form, then place a sell stop order anywhere from 2-3 pips below the low of the inside bar . You do that soon as that that inside bar closes. - For Stop loss, place it anywhere from 5-10 pips above the high of the inside bar . Buying Rules: The buying rules for the inside bar trading strategy are just the exact opposite of the selling rules. Here they are: - the market must be in an uptrend. - when you see an inside bar form, then place a buy stop order anywhere from 2-3 pips above the high of the inside bar . You do that soon as that that inside bar closes. - For Stop loss, place it anywhere from 5-10 pips below the low of the inside bar . DISADVANTAGES OF THE INSIDE BAR FOREX TRADING STRATEGY - false breakouts do happen and you will get stopped out as price reverses and hits your stop loss. - avoid trying to use smaller timeframes to trade inside bars, there will be too many “noise” and false signals. ADVANTAGES OF THE INSIDE BAR FOREX TRADING STRATEGY - pure price action trading - if you trail stop your trades to lock in profit as shown in the previous chart above, you can make a lot of profit if the trend is strong. - if you trade using the daily chart , you need only a few minutes each day to check your chart, place your pending order (when you spot an inside bar ) and walk away. Check later during the day to see which pending - - order was activated then cancel the other that was not activated. - its a very easy candlestick pattern to spot, even a housewife who has no prior experience in trading forex can use this system and make money trading forex.
Education
by asdfghjhhg
3
Example of a inside bar + false break tradeHere is an example of a profitable trade that closed out today for a 2R gain. I currently have an open order on the USDCHF with a simular setup. See linked idea. The setup consists of the following elements: strong / clear preceding trend consolidation in the form of one or more inside bars a false break out of the consolidation, thus rejecting the counter trend direction place a trade in the direction of the preceding trend In this example the break was a well formed pinbar and I therefore placed a limit entry order at the 50% retracement of the pinbar. Stop was placed above the high of the pinbar. Profit target was placed at two times the distance of the stop, giving a R2R ratio of 2. Target also nicely lined up with the bottom of the consolidation / mother candle of the inside bar pattern. Learn more about my trading at: www.davetromp.net
Education
by dave25981155
1
USDCAD, CLASSIC inside bar tradeIf I'm asked about what is the most interesting part for inside bar trade, my answer is "trailing". 1st kick is only for risk management purpose to make me able to deposit the risk to other trades, the outstanding risk-reward ratio is about the other half of the positions. The other half is very important so I need it to run as much as possible, so I NEVER put sell limit order for the other half of the positions, I would more like to change my out only. With trailing in mind, I never have to worried about whether to sell or not, all I need to do is to wait for pivot to put my out (LH/HL). This inside bar trade is a multi-reason combination itself 1. 1st inside bar after the rate hike (both direction trade) 2. inside bar after new low (short) 3. the more inside bars in a row the better It literally was a MUST trade for all the inside bar traders.
Education
by Trader_Joe_Lee
AUDUSD Inside 4 hour, outstanding risk-reward ratio!Inside bar setups work the best when there is momentum, and momentum comes from news, fundamental events, chart patterns, short squeezing, and many other ways. The 2 inside 4hr bars for AUD/USD implied great risk-reward ratio! 1st one only 25pips risk and gave an 150 pips move; 2nd one only 10 pips risk and gave an 90 pips move! The larger the time frame, the higher the winning percentage for inside bar trades. While frankly speaking, it's slightly higher than 50% winning percentage only (yes, like toss coins), but the point is it provides a great risk-reward ratio and able to make money even with 50% winning percentage. that's the whole story about inside bar setup.
Education
by Trader_Joe_Lee
Inside bars and how they could help improve your trading Price Action - Inside Bars Hi i would like to run through one of my favorite price action patterns the inside bar which hopefully could help to improve your trading. They are very easy to trade, easy to see and can be very rewarding. They happen in every market and every time frame, although i find it is best to only trade them on the daily and 4hr tf's this is important and much more reliable. They can be used rewardingly as a standalone trading strategy. And for trend continuation/confirmation, position increasing which i use a lot, overcome Indecisiveness, position closing and trend reversals. I'm not going to go in to great detail as there is plenty of reading and places you could learn this pattern in greater detail than i have the time to explain. What is an inside bar and why do they happen An inside bar is basically a two bar/candle pattern comprised of bar A known as the mother bar which precedes bar B the inside bar which will be completely engulfed by bar A depicted in chart. So why do they happen well basically an inside bar tells us that buyers and sellers have been reluctant to push prices above or below the previous candle’s high or low. In a way, inside bars reflect indecision in the markets. When to trade them It is best to trade inside bars in the direction of the trend as a trend continuation pattern but they also represent potential reversals at key support and resistance zones. Here is a chart for the gbpusd that i was working on, granted it's not the best to use as an example but i trade a lot of gu and suppose it highlights even how they can be profitable in difficult trading markets. So i was expecting another push up to my resistance area within the flag before another anticipated down move. Price had a good bounce off the rising support (reversal level) followed by a moment of indecisiveness creating a nice inside bar, Great i can now put a buy order in just above the high of the mother bar with my stop at the low, always allow a couple of pips room if using stop limit orders as to avoid premature buy ins which could reverse. So my buy order is in lets see how it went In this instance there was more indecisiveness followed by another inside bar. I was prematurely triggered in but stayed well within my stop. To avoid this it is best to confirm breakouts on a smaller timeframe 4hr - 2hr where we want price to close above the breakout line and hold without using stop limit orders if you have the time, i didn't. Anyway as you can see price did break up just reaching my target resistance area and i closed this trade +230 pips. As we had another inside bar i was also able to bring my stop up to minimize the risk. So now my long had played out i wanted to get in short. price made an m pattern double top if you wish with an inverted hammer reversal top also with divergence so i got in here with a small stop at our last swing high. Yes i didn't wait for trendline breakout price action was good enough for me to enter for a small risk. Price then went down we had a good looking breakout with trend direction and an inside bar formed. I was already in the trade so i saw this as great chance to either close my short or add to it. And again this one went great for me price broke lower so i was able to stay in the market and increased my position. Hitting my target area for 540 pips + an extra 250 pips thanks to the inside bar. As price continued you can also see there are more inside bar continuations. the following inside bar had a very large mother bar we can still trade these just the same but will need to adjust stops only using a portion of the mother bar where there is some previous support or resistance areas to the left.
Education
by wolfstreetswinger
3