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Inside Bar

EURUSD - Analysis for the week ahead and potential tradesIn this video I show some good past setups on the EURUSD that would have been profitable as well as take a look at where the markets may be going over the next week or more. I focus primarily on the inside bar pattern and some potential ways to trade these setups. Since early this year there have been a number of high quality price action setups including inside bars, engulfing bars, and pin bars. The majority were quality, trade-able setups that would have offered risk:rewards of 1:2 or better. Price is currently stuck in a strong bearish trend so we will be looking for small pullbacks into key resistance areas to get short with the trend. There is also a larger head-and-shoulder pattern that is currently forming. Prudent traders will want to watch closely to see if that pattern continues to form as well.
Short
by krugman87
8
AUDUSD - Short term bearish signal confirmedWhile I have been and am still bullish on the weekly candle, there has been a fairly bearish signal in the 4 hours that has formed and also been confirmed. I was originally in the position from earlier this week and planned on holding until either the weekly pin bar broke to the upside or there was a significant enough bearish signal to cause me to close my position. I was still able to close for a profit since I had gotten at a lower price. Such a signal happened overnight. The setup was an inside bar/ pin bar fake-out. That is where you have an inside bar pattern followed by a breakout to the upside which quickly pulls back in and formed a pin bar. This is generally strong signals due to the fact that many market participants will get long on the breakout and when price pulls back in you have a squeeze setting up. In this particular case there were multiple inside bars which give the pattern even more strength. If you are bullish and still want to get long there are a few options, you may simply want to wait until the price breaks above the weekly pin bar for the safest trade, but also the smaller risk-reward. If you are feeling more aggressive you could enter once price touches the important trend line at around 0.7475, or simply sit this one out.
by krugman87
ES - Inside bar pattern breakout trade!An inside bar has formed on a number of charts including the /ES, /YM, XLF -0.42% and others. These are all following a strong trend which signals that the market is taking a short breather. Generally in periods of price consolidation after a long move we want to look for opportunities to get in the market on the next up move. In these cases we would be looking to enter the trade on an upside break of the inside bar pattern (2731). A stop loss can be placed at 2700 for an attractive risk/reward setup.
CME_MINI:ESM2018Long
by krugman87
USOIL inside hr after new high, shall we?In terms of inside bar trade, the answer is a clearly YES if it's able to break to the upside! Of course, it's simply a trade to chase the high, like all the other "long the inside bar after new high" trades~ It's quite interesting to see how the market reacts with this kind of trades. DON'T try this kind of trade without proper knowledge about trade execution skills like 1st kick, risk-reward stop, and trailing. If it breaks to the downside first, this trade doesn't exist anymore. Let's see how it goes!
TVC:USOILLong
by Trader_Joe_Lee
2
DXY inside day before NFP.DXY had an inside day before NFP, which is normal as the markets are waiting and consolidating. An inside day breakout with the NFP momentum combination is quite a worth noticing spot for today's trading. Back to the inside bar itself, it is actually a more bearish one as it's at 0.618 retracement and it kinda extended in terms of 8ema, but we can regard the power of NFP more, just like the earnings of stocks, it can be taken as a whole new start of a session, which means if it breaks to the upside, it also worth the long as it's so important! Let's see how it goes!
TVC:DXY
by Trader_Joe_Lee
4
CMG Daily shooter after earningsInside bar after earnings is one of the inside bar trades that can break the 8ema rule as the earning day may be taken as a whole new start, which implies strong potential momentum. CMG had a 25% rally after the earning report to come back to the stage, and it gave a daily shooter here, I like the long much more than the short though. Of course, if it breaks to the downside, the room of correction also looks juicy to trade the gap filling, but I'd rather skip the trade with regards to how it soars to the sky. That is, if it breaks to the downside first, this trade doesn't exist anymore! Let's see how it goes!
NYSE:CMGLong
by Trader_Joe_Lee
SPX500 4HR 0.618 and demand zone combinationRecently the SPX500 is just a great trading vehicle by harmonic patterns, supply & demand, and inside bars. It started with a huge daily XYAB, bounced of 2 entries of it , forming tiny XYAB and 2618, and numerous inside bars trading opportunities.. Yesterday it dropped from the 2660 supply zone Here we got another chance to trade take the long with a 0.618 and demand zone combination, so I'll be waiting for proper reversal sign near 2615 to long! Let's see how it goes!
FX:SPX500Long
by Trader_Joe_Lee
BTCUSD: Continuation Pattern Forming. Is The Trigger Worth It?BTCUSD update: Price is poised to make a higher high and possibly break the 9225 old support/new resistance level which can lead price up to the 9861 reversal zone boundary. Along with this possibility, an aggressive swing trade setup is developing as I write this. Is the trigger worth entering? In recent reports, I have been writing about how not all signals are equal and how buying supports is more effective than buying highs in strong markets. There are exceptions, and usually they are based on how well defined the setup is, what kind of obstacles the trade is facing, and how clear the momentum is. In other words, context strongly defines whether or not it is worth taking the risk, in conjunction with how aggressive you choose to be. In this case, there is an inside bar that has appeared, supported by a previous higher low formation and clearly positive sloping trend line. Chances are a break out from this inside bar will lead price to the 9225 level which is a historical level that has affected price previously (see chart). Since buyers are in control, it is not unreasonable to expect an attempt toward the 9861 level which is the reversal zone boundary relative to the 9225 high. If the bullish trend line stays intact, and price breaks the 9048 trigger, you can risk about 300 points to potentially make 600 to 700 points based on a conservative target. The reward/risk is attractive and the current price structure (mini consolidation) is typically a trend continuation pattern. What makes this trade setup riskier is the fact that price has not retraced to a reasonable support (which doesn't always happen in strong markets). That is the aggressive trade idea while the more conservative idea is to wait for a retrace back to the 8108 level which is the .382 of the current bullish structure. The immediate trend line would be compromised, but as long as price maintains this level and establishes a reversal pattern off of it, often the next move is at least a retest of the previous high. It is more conservative because you are buying at a more attractive price along with a higher probability of retesting a predetermined level (previous peak). In summary. buying near resistance levels is often a bad idea but occasionally there are exceptions. Experience and understanding context along with your capacity to undertake the associated risk determine if this type of setup fits into your trading plan. A shallow retrace such as this are common in strong market environments and can offer a structured way to participate even at less attractive levels. Make sure to check out our regular updates on S.C. about this potential swing trade and how we decide to participate if it triggers a long. Questions and comments welcome.
BITFINEX:BTCUSD
by MarcPMarkets
13
ETHUSD: Looks Great, So Why Wait? Resistance Zone.ETHUSD update: These markets won't pull back, but do not get sucked in by the fear of missing out. Risk of a retrace is high within the current resistance zone even with the new long signal that has just appeared. As Andrew recently told some of his followers, "No trade is a trade". The 503 to 541 resistance zone (.618 of recent bearish structure) is a minor resistance that price is fluctuating within. The previous candle in this chart is an inside bar, and the current candle has broken the high of the inside bar. This is a buy trigger, but you must remember not all buy triggers are created equal when it comes to risk. Context is key in a situation like this. I am all for being long this market, but NOT on a buy signal in the middle of a resistance zone. All markets retrace, and this one will too. The fact that the major bearish trend line was taken out with conviction is a long term bullish sign. This means buying pullbacks is the better choice since momentum is now favoring the long side. The newly established bullish trend line is the defining factor for this move. Until it is compromised, this market should remain strong. So where is the best place to buy? In previous reports I was writing about the 432 and 451 resistance levels that required price to break above in order to confirm that the bulls are in control. These levels which were old resistance are now more likely to act as a new support and it just so happens to be in the vicinity of the bullish trend line. This is the first area I will be watching. If price never gets there, then I have no reason to buy. In summary, as amazing as this short squeeze has been, buying at the high of it is an ineffective behavior for any time frame of trader. All markets retrace, just not always to the levels that we would like. A trading plan begins with formulating a general perspective and then evaluating levels AHEAD of time. Price will either retrace to the predetermined level, or it will not. If it chooses not to, then you simply adjust and find the more relevant levels. Jumping into a market because it looks great is usually worst time because the risk is higher and potential lower even after a standard buying signal. There are plenty of support levels that offer more attractive reward/risk opportunities, it is just a matter of waiting it out. As soon as a quality signal appears, it will be sent out to our S.C. community. Questions and comments welcome.
BITFINEX:ETHUSD
by MarcPMarkets
32
BTCUSD Inside week, time to choose direction 2.0!! Last time in the late January, when BTCUSD finished weekly 21ema correction, which made the inside week so important. And now, the inside week here simply is the 0.618 retracement since bitcoin started trading. If it breaks to the upside, the 0.618 retracement support is strong, not a bad idea to take some long positions; if it breaks to the downside, the downtrend continues so more inclined to short! Let's see how it goes!
BITFINEX:BTCUSD
by Trader_Joe_Lee
BTCUSD: 6900 Trigger Near Upon Subtle Bullish Signs.BTCUSD update: The initial bearish trend line is clearly broken, and an inside bar has appeared (previous candle). All of this is happening around the 6805 reversal zone boundary. This market is still in the process of setting up for a broader move higher in my opinion. Here is the swing trade trigger to look for: Long 6900 Stop 6488 Target 7460. R:R Approx 1:1. These subtle changes should not be all that surprising. They are unfolding within the largest support zone relative to this market since the sub 200 lows. The 8171 to 4983 support zone (.618 area of entire bullish structure) has been in play since the 6K low in February. As I have written in previous reports, a broader bottom is a process. IF price breaks the 7492 minor resistance (.382 of recent bearish swing), that will provide confirmation that a broader bullish move is in progress. A broader move higher from current levels can lead this market back to the low 8Ks at minimum over the next couple of weeks. 6897 is the inside bar high and serves as a long trigger for a swing trade, while the 6650 and 6500 levels serve as stops. The reward risk is still very favorable to the bullish side because the minimum target is the 7492 level. So you are risking 300 to 400 points to potentially make around 600 at least. All this market needs is a catalyst or some typical tech drama to motivate a short squeeze. Price action is leaning toward the bullish side in a way that is not obvious to the crowd. This is what opportunities look like. As always, these signs can be negated by any bearish surprise, but I think the potential is very limited. This market can still retest the 6204 and even 6K, so it is important to always be prepared for those scenarios. Speculating is not about precision, it is about constantly adjusting. In summary, price action is coiling around a reversal zone boundary near a major low within a broader support zone. You can't ask for a more attractive situation that isn't obvious to the market crowd. The appearance of the inside bar provides technical structure for a long trigger with well defined risk. If this market starts breaking near by resistance levels, it will be confirming a broad double bottom which can eventually lead back to 10K, it is just a matter of time and catalyst. The price action story is saying that the shorts are vulnerable in an area that still looks bearish to the untrained eye. Learn to recognize the subtle signs, not the obvious ones and one way to accomplish that is to acknowledge what the market is NOT doing, rather than always focusing on what it is. Questions and comments welcome. (See trade signal updates on S.C.).
BITFINEX:BTCUSDLong
by MarcPMarkets
14
Spotify(SPOT) inside day after IPOSPOT and DBX are 2 IPOs that the market put the most focus on this year. DBX got an inside week to trade, and SPOT got this inside day. Momentum trade is one of the most effective way to trade IPO stocks, we often traded the 1st inside bar after the IPO (Usually first inside 5 /inside 15) If it's shortable, the first inside 15 on the IPO day was OUTSTANDING! So now there is the first inside day after IPO, and given that it's probably hard to borrow for most of traders, I only looking forward to trading the breakout! If it broke 144.5 before the inside day breakout out, this trade doesn't exist anymore!
NYSE:SPOTLong
by Trader_Joe_Lee
GBPUSD Inside day, is that a meaningful one?In a trading day like last Friday that most of market participants had a day off, it's just normal to form an inside day with limited volatility. A worth-trading inside bar usuallty comes from high level of uncertainty, bulls/bears fighting, and digesting important news....etc None of which is about lack of liquidity; as inside bar is a momentum trade, enough momentum is required for this kind of trade. While, in terms of chart itself, it's still a worth noted one with a small uptrend just finished 21 ema correction, and it's in daily demand zone. My strategy to this inside bar is not to trade it directly(although it's hard to find a 50 pips risk inside day in GBPUSD lol) wait for the breakout and find the corresponding confirmation entry intra-day. Let's see how it goes!
Long
by Trader_Joe_Lee
Dow Jones (US30) bullish gartley and inside 4hr combination"Systematic risk creates potential buy low opportunities" People with this thought may have participated the Brexit day and the Trump winning day's victories. Also,in terms of harmonic trading, the logic is not "It's nonsense to catch the falling knife" ; it's more like "We'll be waiting for the slump to get the long entry". Of course, there is no need to put a buy limit to create liquidity for the market, although we keep "buy low" in mind, it still needs time to let the selling momentum get released, and that's why we need reversal signs. Here we got a bullish gartley pattern and inside 4hr combination, I'll be willing to be more bullish intraday until the inside day low gets broken down. Let's see how it goes!
FX:US30Long
by Trader_Joe_Lee
1