Inside Bar Trading Strategy

🤔 Under consideration

An “inside bar” pattern is a two-bar price action trading strategy in which the inside bar is smaller and within the high to low range of the prior bar, i.e. the high is lower than the previous bar’s high, and the low is higher than the previous bar’s low. Its relative position can be at the top, the middle or the bottom of the prior bar.

Inside bars can be traded in trending markets in the direction of the trend, when traded this way they are typically referred to as a ‘breakout play’ or an inside bar price action breakout pattern They can also be traded counter-trend, typically from key chart levels, when traded this way they are often referred to as inside bar reversals.