Inside bars: do you trade the breakout of the mother bar?
An inside bar — a candle contained by the previous one's range — signals compression, and the trade is the break of the mother bar's high or low. In ranges it whipsaws; in trends it catches continuations.
How do you trade them?
- the conditions that make an inside bar tradeable
- your entry, stop and target on the break
- the regime where inside bars burn you
The candlestick guide covers the pattern's structure.
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