I hope everyone’s having a fine weekend.
This is a very simple price action-based strategy which has a positive win rate across forex pairs. Many systems follow a similar principle, that an Inside Bar signifies congestion and that price will probably break out upwards or downwards after the IB within a very short time period.
I have been looking at this on D1 charts. The idea is to wait for an IB, then set a buy order a little above the daily high of the IB and a sell order a little below the low. Set a stop-loss on the long at the sell order price and a stop-loss on the short at the buy order price. Order sizes are adjusted according to personal risk tolerance. Exit the open position at the next Close if it is in profit. If its not yet in profit, just wait for the next Close etc. etc.
If the chart shows another IB following after the first, re-set your orders using the second IB’s high and low, but don’t forget to adjust the stop-losses and position sizes as well.
Looking forward to next week.