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As you can see, there are two types of this price action pattern:
A bullish inside bar false breakout that forms when the market is
trending down and it is also considered as a bullish reversal signal
when it is formed near a key support or resistance level.
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THE CANDLESTICK TRADING BIBLE
A bearish inside bar false breakout that occurs in a bullish trend and it
is seen as a bearish reversal pattern when it is found near an important
level in the market.
This setup can be considered as a continuation pattern if it is traded
with the trend.
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Inside Bars false breakouts trading examples
In my own experience, the most important levels that traders should
look for to trade this signal are the following:
-Support and resistance levels, and supply and demand areas
-Fibonacci retracement levels, particularly, the 50% and 61%
retracement levels.
-21 moving averages and trend lines in trending markets
-Horizontal levels in range-bound markets
Here is an example of how to trade inside bar false breakout in a
trending market:
As you see in the chart above, the market was trending down, that
indicates that sellers are in control of the market, so if you decide to
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