Inside Bar Entry
An inside bar is a bar or series of bars which is/are completely within the range of the preceding bar, or , i.e. it has a higher low and lower high than the bar immediately before it (some traders use a more lenient definition of inside bars to include equal bars). On a smaller time frame it will look like a triangle.
An inside bar indicates a time of indecision or consolidation. Inside bars often occur at tops and bottoms, in continuation flags, and at key decision points like major support/resistance levels and consolidation breakouts.
They often provide a low-risk place to enter a trade or a logical exit point.
The most logical time to use an inside bar is when a strong trend is in progress. If we play the break out, our stop loss can be defined by placing it below the half way point of the outside bar or mother candle.
See Charts Below
Pin Bar Entry
A pin bar is a 1 bar formation. The pin bar is a price bar which has rejected higher or lower prices. Price will open and move in one direction, and then “reverse” durign the session to close at or past the open.
The candle is easy to spot because it has a “tail” or deep wick. It is a common reversal signal which typically needs to occure near a support or resistance area. Somne traders use them in conjunction with Fibonacci retracemens as well as moving averages or pivot levels.
In a nutshell, Pin bars are the ultimate strategy for picking up major swings in prices. In my experience, the Forex market is most responsive to this entry signal, due to the number of traders in Forex, the pattern becomes self fullfilling.
See Chart Below
The ‘ Fakey ‘ Entry. (Inside Bar “false break pattern”)
This pattern is where we have a false break on the inside bar. Instead of the market going with the intial break of the inside bar pattern, the market “fakes out” and reverses back above the open and makes new session highs.
This initiates a solid burst of momentum which can last 1 or more days.
see chart below
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