Inside Bar – The role of the inside bar is mainly to change the market’s direction. Whenever an inside-bar candle performs in the market, the market changes its movement and starts moving against it. The inside bar pattern does not occur frequently.
Make a good strategy so your hold becomes a hundred times. In the patterns, there is a big candle, and a small candle is performed immediately after that. And that candle is formed inside that big candle. Now, these two candles are called the mother and baby candles.
In the Inside bar, it can be said that the big mother candle has taken her son in her arms inside this, we must remember that the baby candle should be up to 75% smaller than the mother candle. If all those conditions are matched then we will call it perfect inside bar candles
And it should not break with the low of the mother candle, which means the baby candle should not be more than the low mother candle. It can be equal to it, but the common should not break.
The inside bar is always performed to finish the downtrend. And this pattern is performed at the very end of the market trend. There could also be support at the end of the movement or a trend line, and a new fresh bottom can be.
Inside Bar Work Extremely well In Trending Market
This pattern mainly works well in the trading market because we have complete information on the market’s direction inside the market. In which direction the market is going continuously. When we have a clear path, we can take trade quickly, and this pattern works very well when the order is inside the market.
Since the market is going down in a continuous train at that time, the inside bar makes it easier for the need to reverse.
This pattern doesn’t work because of the market and side wedge market because there is no direction in the market then so that we can take the trade.
How To Take Trade On Inside Bar
Friends, now the point is how do we take our trades on these patterns? First of all, we have to see where this pattern is formed. If this pattern is formed precisely on the top, we will wait for the mother candles to break the high.
That is, another candle breaks the high of the mother candle and goes up. Now, as soon as that candle breaks the joy of the mother candle and goes up, we will trade only above the pleasure of the mother candle.
We have to wait for the break of the high of the mother candle and not close any candle on it; only we have to wait for the suspension of the joy of the mother candle.
How To Book The Profit
We have made the trade, but I need to know where we are booking our profit. Because we cannot become good traders until our targets are clear. Many people tell you that your target is twice the difference between your target and your stop loss.
But it doesn’t happen at all. We should always keep our target according to the momentum of the market. If any swing high is too close in the market, then we should keep our target till there and not at least two times than that. Because of this double one, it doesn’t hit many times.
And at the same time, while deciding the target, it is also to be seen that there is no resistance; any trendline is coming inside the market; if this thing is very close, then it is best to ignore such trades. Always keep one thing in mind while trading never brings your ego into the market; whenever your ego comes with you inside the market, you will wipe out your capital very soon.
Where To Exit Or Put Your Stop Loss
This is the guru mantra of a trader to be successful. Always put your stop loss in the market. Never work inside the market without stop loss; if you have not set your stop-loss even once by mistake, then it is good that the market can wipe out your entire capital.
In this, we have to place our stop loss below the mother candle, with an l little buffering. And after that, all we have to do is wait for our stop loss to hit. Because sometimes we panic and cut our trade in small losses. But we don’t have to wait for the hit of our stop-loss. Because many times the market comes to its stop-loss immediately.
After that, the market starts moving upside again. So we always have to wait for our stop loss. This is our biggest enemy. And it is also our giant friend. It has two aspects. But we have to give more importance to the second aspect.
We always have to consider it as our friend and not our enemy. Very often, it saves us from a considerable loss. Because sometimes a big or unaccepted move comes into the market. So we should not trade without stop-loss.