CandlemindLog in

Candlestick patterns

Inside bar pattern

A candle whose high and low stay inside the range of the previous candle (the “mother bar”).

1.173631.177211.180791.184361.18794Mother barDecision pointWhat happened next →
Real example: EUR/USD, 15-minute chart, 2020-09-21. Pattern detected automatically using only the candles before the decision point; on the right, what happened next.

Why it works

It is a pause: the market is compressing. When price breaks out of the mother bar, the move usually continues in that direction.

How to use it

In a trend, trade the break of the mother bar in the trend’s direction. Stop on the other side of the mother bar.

The typical mistake

Trading inside bars in a choppy range, where breakouts in both directions fail.

FAQ

What is Inside bar in trading?

A candle whose high and low stay inside the range of the previous candle (the “mother bar”).

How do you trade Inside bar?

In a trend, trade the break of the mother bar in the trend’s direction. Stop on the other side of the mother bar.