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Inside Bar

Gold Inside Candles#gc1! #gold – After last week’s market selloff which dropped gold price with it, gold created an inside candle on Monday which could be an indication of a reversal back to the upside ahead. An inside candle is formed when price trades within the high and low range of the previous candle, making the candle an inside candle. The inside candle is therefore a two candlestick price pattern. An inside candle is also similar to a bullish or a bearish harami candlestick pattern. The main difference being that with an inside candle, the highs and lows are considered while the real body is ignored. An inside candle is generally considered to be a reversal pattern formed when the second candle or candlestick is engulfed within the previous candlestick’s high and low. In this gold chart, Friday’s selloff is the first candle in the inside candle pattern shown with two red lines extending from its high and low. Mondays candle is completely inside Fridays high and low and is a long-legged doji candle, where price has a small body and two long wicks extending above and below it. These long wick represent traders attempting to push price higher and lower on Monday, but ultimately closing price near the open which creates a small body. Doji candles represent trader indecision and indicate that they were mostly undecided as to which direction to move price during the course of the day. The most recent candle, Tuesdays, is also creating another inside day for now as it is trading inside of Mondays total price range indicated by yellow lines. What we want to see going forward in the immediate short-term is for a price move above Mondays high in price, or above the upper yellow line of Mondays doji candle. From there, a move above Fridays high in price(upper red line) would be further indication that gold traders are still bullish and ready to take price higher. The overall view on gold remains bullish.
COMEX:GC1!Long
by PrepForProfit
Bitcoin 8500 Inflection Point: Fake Now Or Break To 7Ks?#Bitcoin is about to trigger a new sell signal. Just because we operate a long only strategy does not mean we fail to observe bearish price action, or hold on to some limiting opinion or bias. It means we do nothing with the signal and instead WAIT until our criteria aligns for the next swing trade long position. In this video I briefly cover the levels and location where we believe there is a high probability for such a bullish reversal to materialize. The following are key points that I make in the video so that you do not have to watch the whole thing. 1. In short term trading especially, you cannot hold onto opinions. We operate long only because it makes more sense for the risk tolerance allowed for this particular strategy. Our choice is not based on an opinion, it is based on the boundaries of our risk tolerance and realities of an unregulated market. Again, you do not have to trade both sides of a market to generate a positive return over time (see our track record). 2. IF price decisively clears the 8400 level, it can lead to a test of the next proportional support area (8K to 7350). This is relative to the .618 retrace of the most recent bullish impulse (6450 to 10,400). This does NOT mean it WILL test the zone, what it means is that the PROBABILITY of such an outcome in increased. Probabilities CHANGE relative to the unfolding price action. IF the 8500 area holds, (price action fake out) we are open to taking a swing trade long around current levels, but order flow MUST confirm the reversal first. 3. The 8K to 7350 zone is also an attractive location for both our swing trade strategy AND for long term inventory (position trade). IF price can establish a reversal pattern or structure within this area, we will be prompted to take a swing trade long also. In terms of inventory, we can add with or without a setup, but risk will have to be adjusted by the position size at the time of entry. Keep in mind, swing trades and position trades are completely SEPARATE strategies and must not be mixed together. In the game of market timing, we face a highly random environment. There are no rules (except for regulatory and exchange rules) which do little to define how to play this game successfully. The ONLY control we have is the set of rules that we MUST create for ourselves. No rules means emotions, feelings and "common sense" will dominate your decision making process which the market will randomly reward (followed by overconfidence and an empty account). Rules not only protect capital, but also help to minimize randomness and assume risks that are quantified. We follow rules, and over time, that is what produces results. They don't have to be complex, but they must be present in order to operate with any consistency. One of our simplest rules? Wait for the candle to close before taking action.
BITSTAMP:BTCUSD
by MarcPMarkets
28
ETHUSD - Hanging on by a ThreadETH is currently hanging on by a thread by holding the very last tiny bit of support within the bearish pennant. Unless price can reverse strongly from here then the chance of price breaking down in the near future remains high. Even if price is able to bounce from here it will face strong confluent resistance at around $225. If price can break and hold above this $225 by the end of the day tomorrow, then it significantly reduces the chance that price will break down from here. There is a final scenario that needs to be pointed out. There is currently a double inside bar pattern that has formed. If price were to break above $240 and then pull all the way back down to $220-ish or lower, this would be an extremely bearish double inside bar / pin bar fakeout.
GEMINI:ETHUSD
by krugman87
1
Weekly Inside Bar - Reversal next week - BUY AUDNZDGood afternoon traders, The AUDNZD is creating an inside bar on the weekly time frame. This is a strong reversal signal when at a major support or resistance level. RBA Interest Rate decision next Tuesday. Due to a turn around in the housing market, as well as strong employment figures, the RBA could hold interest rates steady. Jump down to a daily time frame there is also a bullish divergence on the RSI. Any thoughts and comments welcome!
Long
by ForexStoreau
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
WATCH OUT FOR A BREAK ON MONDAY 12/23TICKER: $CGC Will history repeat itself? Just like last time, CGC is again a daily inside bar with resistance of $20.28 and support of $19.65. I do expect high volume on Monday, but the break is uncertain until it happens. Don't be bias and watch the charts because price action is KING. I will be watching CGC closely next week and again, will either go long or short depending on how we break. Give me 15mil volume in whatever direction and I will be happy. But looking longer term, this is a daily inside bar within a weekly inside bar. Depending on how we break on Monday, it would impact how we break on the weekly time frame. No matter how we break on Monday, my next target will be the weekly resistance and support of $21.14 and $19.45. Good luck next Monday, don't let your emotions get the best out of you, and remember PRICE ACTION IS KING.
C
by DerekTradeEZ
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