insaid bar Price action trading strategy

 Price action trading strategy

Waht is insaid bar

An inside bar is a type of price action pattern that occurs when the high and low of a candle are completely contained within the high and low of the previous candle. This can be seen as a period of indecision or consolidation in the market, and can be a sign of a potential breakout in the near future. Here is a basic trading strategy for using inside bars:

• Look for an inside bar pattern to form on the chart. This can be on any time frame, but it is usually most effective on higher time frames like the daily or weekly chart.
  

  1. Confirm the pattern by looking at the surrounding price action. The high and low of the inside bar should be completely contained within the high and low of the previous candle.

  2. Look for a breakout in the direction of the trend. If the market is in an uptrend, look for a breakout above the high of the inside bar. If the market is in a downtrend, look for a breakout below the low of the inside bar.

  3. Place a stop loss order a few pips beyond the opposite end of the inside bar. For example, if you are buying, your stop loss should be a few pips below the low of the inside bar.

  4. Take profit at a predetermined level, or use a trailing stop to capture profits as the market moves in your favor.

  It is important to remember that no trading strategy is foolproof, and inside bar patterns do not always lead to successful trades. It is always a good idea to use risk management techniques like stop loss orders to protect against potential losses