Inside Bar Breakout Strategy
Inside Bar trading involves a series of several bars occurring in a range (either upwards or downwards) which allow you to identify potential breakout, reversal or continuation signals. Every succeeding bar in this pattern has a higher low and lower high than the preceding bar. It has at least two candlesticks in the pattern: the Inside Bar and the Mother Bar.
A Bearish Inside Bar occurs when the Mother Bar is a large red (bearish) candlestick followed by a short green (bullish) candlestick. This indicates a bearish continuation pattern and signals traders to place short orders. However, if the short green candlestick appears after a prolonged series of red candlesticks, it may indicate a bullish market reversal and signal you to place long orders.
A Bullish Inside Bar occurs when the Mother Bar is a large green candlestick followed by a short red candlestick. This indicates a bullish continuation pattern in the market and signals traders to place long orders. However, if the short red candlestick appears after a prolonged series of green candlesticks, it may indicate a bearish market reversal and signal them to place short orders.
PGDM in finance, having 5+ experience in Equity, commodities , forex analysis and trading.
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