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THE CANDLESTICK TRADING BIBLE
The inside bar candlestick pattern
The inside bar candlestick pattern is one of the most powerful chart
setup that professional traders look out; however, most
traders fail to
trade it successfully.
Lack of skills and knowledge and poor education are the major reasons
why most price action traders don’t make money trading this Japanese
candlestick.
What is an inside bar candlestick pattern?
An
inside bar is two candlesticks, the first
one is called the mother
candle, it is big and large, and the second one is smaller and it is located
inside of the mother bar.
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THE CANDLESTICK TRADING BIBLE
The illustration above shows inside bars at tops and at bottoms, as you
can see, the second small bar is completely contained by the first one
which is the opposite of the engulfing bar pattern.
The inside bar is seen as a reversal pattern, because it indicates that
the market trend is likely to change especially when it is located at tops
or bottoms.
It is also considered as a continuation
signal in strong trending
markets.
According to Thomas Bulkowski, a successful investor, and trader with
over thirty years of market experience:
A bearish inside bar pattern in a bull market can indicates a bearish
reversal in about 65% of the time.
And in a bull market, it represents a bullish continuation signal in about
52% of the time.