An Inside bar is a simple and powerful candlestick pattern. You may not find an Inside Bar pattern so easily. This is because this particular strategy requires a trend that is strong and not exhausted. Finding an Inside Bar set up in the trending market can be a tough task.

In This Article –

·         What is Inside Bar?

·         How to analyse chart using Inside Bar?

·         How to use Inside Bar on keev?

Category Volatility

Type Lagging

What is Inside Bar?

The Inside bar is inside of a large candle. The large candle is also called a mother candle. An inside bar candle pattern forms after the market shows a long move and represents the period of consolidation. Inside bar is a very powerful price pattern if you can understand to trade with it properly. The range of the Inside Bar candle can't be outside the mother candle even by 1 point. The Inside Bar is also known as a breakout or reversal pattern. The Inside Bar pattern is always in the shadow of the preceding bar. It’s a two-candlestick formation.

How to analyse chart using Inside Bar?

Inside Bars can be traded in trending markets and that too in the direction of the trend. This is referred to as the Inside Bar price action break-out pattern. In the example below it was a down-trending market so the inside bar pattern would be called as ‘inside bar sell signal’.

Inside Bars can also be traded against the trend, from Key Chart levels. This is referred to as Inside Bar Reversals. In the below example we can see that the Inside Bar pattern is against the dominant daily chart trend. Here the price has come back down to test a key support level, forming a pin bar reversal at that support, followed by Inside Bar Reversal.

The perfect entry of Inside Bar is to place a buy stop or sell stop at the high or low of the mother bar. When the price breaks out above or below the mother bar, the entry order is filled.