Valid Inside Bars

Beginner Questions
1

Hi All,

I have been looking around this forum and forex factory for a while now. I have come accross a few what look to be profitable systems. Trading the inside bar or outside bar is one of them.

Although I have had two different opinions on what an inside bar looks like:

Which one of the following pictures are valid inside bars? I have atatched a picture to help

  1. As you can see the body of the candle is inside the body of the previous candle - but the wick is not

  2. As you can see both the body of the candle and the wick are inside the previous candle

Thankyou in advance

John

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2

Attached is the definition that James uses in his thread. However, there are no set in stone rules in trading.
The long lower wick on nr 1 suggests a powerful shift in sentiment, so I personally would trade such a signal. Perhaps go down a timeframe or two and look for confirmation.


1 Like
3

Hi o990l6mh,

Thanks for your response - Looking at the picture has explained everything.

Thanks for your input

John

4

Hi there

Its amazing how the most usefull infomation people need to be a successfull trader is the least read.

That must be why only 5% are successfull, 95% love to follow strategies that say do this and use that indicators.

Inside, outside, gimme bars, and what I call pin bar, as in your example must be the most accurate indications there is.

Happy trading.

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6

Hi MattW2009

Oringinally from Joe Ross, trading naked.

Google it, its very good.

Cheers Lino