FREE DOWNLOAD Forex “Inside Bar” Price Action Trading System and Strategy – The inside bar forex trading strategy is a ‘flashing light’, a major signal to the trader that reversal or continuation is about to occur.
An inside bar indicates a time of indecision or consolidation.
Inside bars typically occur as a market consolidates after making a large directional move, they can also occur at turning points in a market and at key decision points like major support/resistance levels.
An inside bar must stay completely within the range of the bar immediately before it.
In other words, the second bar must have a lower high and a higher low.
What does it mean?
An inside bar is a momentary contraction in price range/volatility.
Within the same unit time, the market covers less ground and stays completely within the range of the previous bar.
It is a pause in price action and does not show clear strength in either direction.
How do we trade it?
Place bracket orders around it to trade its breakout in either direction.
(A buy stop order above its high, and a sell stop order below its low. Once one order is triggered, cancel the other.)
Place only one order (buy or sell) according to the market trend.
Wait for a breakout of the inside bar and trade its failure.
ForexWOT Inside Bar Trading Rules
There are basically two ways to trade an inside bar setup: As a continuation signal or as a reversal signal.
ForexWOT Inside Bar Trading System is A Trend Continuation Inside Bar trading strategy.
In this trading system you will see that we have inside bars that acted as continuation signals, that is they resulted in a continuation of the previous momentum before their formation.
These continuation inside bars often result in nice breakouts in-line with the current trend and near-term momentum.
- Best Time Frame : 30 M
- Currency Pairs ; Major
- NonLag MA 21 blue color and above EMA 15 Dark Orange line
- Price breakout upper H1 inside bar line.
- Signal Trend green color
- Strenght candle indicator green (BUY)
- NonLag MA 21 yellow color and below EMA 15 Dark Orange line
- Price breakout lower H1 inside bar line.
- Signal Trend red color
- Strenght candle indicator red (SELL)
Inside bars as continuation signals – The most logical time to use an inside bar is WHEN A STRONG TREND IS IN PROGRESS or the market has clearly been moving in one direction and then decides to pause for a short time.