What is the "inside bar".
Inside bar called a bar, which has its high and low are within the previous bar, that is located within the range of the previous bar. Previous bar within the range of which there are other bars (there may be several) is defining the bar. On the chart it is quite often the situation when formed several internal bars, with respect to defining the bar.
Business formation, contributing to the formation of this pattern, often characterized by the consolidation of the price (the flat) and the uncertainty of the direction of price movement in the future, and there are, as a rule, after a strong pulse. The price chart, thus, often forms a triangle, the shelf price range.
Formation of the inner bar is pricing uncertainty in the continuation of the development of future price movements, which also explains the formation in this price range area of resistance or support, preventing the further continuation of the price movement. Inside the bar is usually abbreviated abbreviated IB (from clovosochetaniya Inside Bar). Inside the bar rather common pattern method Price Action at various time intervals and financial instruments. The basic concept in this pattern of trade is that if the market is formed inside bar, it means that the market has accumulated potential and is ready to move to it. The purpose of the trading strategy on internal bar is an attempt to enter the price movement with minimal risk. Also, it should be borne in mind that the pattern "inside bar" is often serves as a role reversal formation, that is, that is a bilateral It can be traded like to buy and to sell.
In the analysis of this pattern is a reversal, it is necessary to distinguish between bullish and bearish domestic bar:
By bearish inner bar rank bar, which was formed after the bull defining the bar, the pronounced uptrend. This pattern is the signal for the opening short position.
Bull bar called the inner bar, which was formed after bear defining bar, the pronounced bearish trend. This pattern is a signal to open a long position.
The strategy of trade pattern "inside bar" is simple enough. The pattern "inside bar" can be used to trade any currency pair and any time frame, but it is preferable to use it over long time intervals. This allows, in most cases, to avoid false alarms.
Pattern Price Action allows you to accurately determine the opening price of the trading position and the optimal limit losses (Stop Loss) low risk. Please be aware that the high volatility of the currency pairs require the installation of a greater Stop Loss.
Equipment trade pattern "inside bar":
After a complete formation of the inner bar. Set aside an order to buy or sell, or at the same time to sell and buy at one point, adding the value of the spread of the currency pair traded the maximum or minimum limit inside bar. Type a pending order is determined by the direction of the trend.
Stop Loss order is set on the opposite side of the inner bar
Take Profit order is set at a distance equal to the distance between the maximum and minimum internal bar.
In that case, if the trend in the market has changed, and pending orders did not work, then they should be removed.
If price makes a number one inside bar, then it is necessary to modify pending orders, in accordance with the new internal boundaries of the bar, or you can put the two pending orders on the border of the previous inside the bar and the new. If the order did not work, be sure to remove them. It is important to remember that when you use the pattern "inside bar" should be used only inside bars, which are formed in the direction of the trend. In the case of finding the market in flat and education on the chart bars internal use them for trading should not be.
To search on the chart pattern "inside bar" can be used indicator VAInsideBar. This indicator allows you to define the internal bars on any parent time frame being placed at the lower time frame. For example, placing the indicator on the chart VAInsideBar M15 and specifying settings indicator parameter «Time interval» upstream timeslot, for example H4. It can be observed in the chart M15 internal bars formed on the time frame H4. On the basis of the indicator there is also an expert VAInsadeBarsTrader trading pattern of "inside bar" in both automatic and semi-automatic.
