Quote:
Originally Posted by tazmet
I have been following this thread for weeks now and have printed most of the charts and pictures. Somewhere in this thread there is a beautiful picture showing IB/OB and labeling exactly what it is. In fact, I printed it out and am staring at it right now. It is obvious from the picture. The confusion for me was that the original system rules stated that "The inside bar is simply when the current bar is less than or equal to the bar to the left of it." For someone who follows things to the letter, this meant that for example, the high could be equal to the previous bar but have a lower high and still be an IB. Or, the low could be equal but it could have a lower high. From all of the examples and pictures shown, this is clearly a wrong interpretation! May I put this to rest finally, by saying that your definition is the definitive answer?
And now I know my first psychological weakness for my trading plan (overcomplicating everything)  |
Here I made this with photoshop showing inside bar examples.
I don't know what pictures your looking at but it looks like they are confusing you.
The red bars in the left box are inside bars.
The red bar in the right box is not an inside bar.
Notice how the high of the inside bar (shadows included) can be equal to or less to the previous bar. And vice-versa with the low.
In the right box example, the lower shadow of the red bar extends beyond the low of the blue bar. Therefore it's not an inside bar.
Hope that helped.