Learn the Power of Trading an Inside Bar
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Learn the Power
of Trading an
Inside Bar
An inside bar is a bar or series of bars which is/are completely within the range of the preceding bar, or , i.e. it has a higher low and lower high than the bar immediately before it. It may indicate a time of indecision or consolidation. The often occur at tops and bottoms, in continuation flags, and at key decision points like support or resistance levels and consolidation breakouts. The most logical time to use inside bars is when a strong trend is in progress. Volume on the inside bar should be noticeably smaller than that of the preceding bar since it indicates a more balanced situation.
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