Inside Bar

Inside bar happened when the whole candle (body and tail) are within the previous high and previous low of the previous candle. We will called it "mother bar" Just see picture below, you'll understand.

Inside bar is one of my favorite price setup (price setup and trading setup is different). Because i used weeekly chart, inside bar is rare to found, but when it comes, than you find a very good trading setup.

Inside bar is a breakout trading. What to break, the high or the low of the mother bar. Every one who trade inside bar price setup must wait the price to break the range (high low mother bar).

How to trade inside bar?
There is two way to trade it
First : TRUE BREAKOUT
Second : FALSE/FAKE BREAKOUT

1. True breakout
It happen when the price break the mother bar range (high or low) with a strong bull or bear candle and close outside the range. Open a position after the breakout is complete.
Example:

2. Fake breakout
It happen when the price break the mother bar range, than the price pull back and close inside the range again. Open a position after the fake breakout complete.
Example:

You canT just rely on the price setup - inside bar. You must consider the other part of the market. I used moving average and psicology level to filter my trade.

Enjoy your trade!