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THE CANDLESTICK TRADING BIBLE
The psychology behind the pattern formation
The inside bar formation indicates a period of consolidation, in case of
a bullish trend, it reflects that the bulls are not buying any further on
the second day, it is represented by a small black candle on the second
day, after a strong uptrend.
And in case of a bearish trend, it means that sellers are not in control
of the market any more, it is reflected by a small white candle after a
strong downtrend.
Your understanding of the psychology behind this pattern will help you
better identify major turning points in the market, and time correctly
your entry and exit.
How to trade the inside bar candlestick patterns?
The inside bar can be traded successfully
in trending markets
particularly if the market is moving strongly.
Because the formation of this price pattern provides you with a great
opportunity to join the big move.
This strategy is very simple, you have to identify a strong trend, and
wait for the formation of an inside bar pattern in line with the direction
of the market.
The formation of this pattern indicates that the market pauses before
making its next move; this will allow you to enter the market in the
right time and make big profits.
See the illustration below to learn more:
