{"id":665712,"date":"2025-08-29T15:20:44","date_gmt":"2025-08-29T13:20:44","guid":{"rendered":"https:\/\/ftmo.com\/?p=665712"},"modified":"2025-08-29T16:05:13","modified_gmt":"2025-08-29T14:05:13","slug":"inside-bar-strategy-a-simple-yet-powerful-trading-technique-for-all-markets","status":"publish","type":"post","link":"https:\/\/ftmo.com\/en\/inside-bar-strategy-a-simple-yet-powerful-trading-technique-for-all-markets\/","title":{"rendered":"Inside Bar Strategy: A Simple Yet Powerful Trading Technique for All Markets"},"content":{"rendered":"
Struggling to find a simple trading strategy that delivers real results? You’re not alone. Many traders face the same struggle, constantly switching between strategies in search of something that works.<\/em><\/p>\n The inside bar pattern could be exactly what you\u2019ve been missing. It\u2019s clean, easy to spot, and offers a structured way to enter trades with precision. Let\u2019s take a closer look at how the inside bar pattern works and how to trade it.<\/p>\n The inside bar pattern is a price action pattern<\/a> where the current bar is entirely within the range of the previous bar (the mother bar)<\/strong>. The pattern signals indecision and often precedes strong directional moves. This strategy is used by traders to anticipate potential breakouts following market consolidation. In the market, we recognise two types of inside bars:<\/p>\n The inside bar is not just a technical setup. It also reflects the psychology of the market. After a strong move, participants hesitate. Traders take profits, institutions pause, and momentum slows. This contraction in price action shows that the market is preparing for a new phase. Inside bars tend to be most effective in the following scenarios:<\/p>\n 1. Identify the Pattern: <\/strong>Look for a candle whose high and low are fully contained within the range of the previous candle.<\/p>\n 2. Plan Your Entry: <\/strong>For better results, focus on inside bars that form after clear signs of market aggression. This could be after a fair value gap or near key support and resistance levels, where price is more likely to react with momentum. Once you\u2019ve identified a valid inside bar, prepare to enter on the breakout with market orders:<\/p>\n This approach helps you enter the market only when the price shows a clear direction, reducing the chances of getting caught in false moves.<\/p>\n 3. Set Your Stop Loss: <\/strong>A common approach is to place the stop loss just beyond the opposite side of the inside bar. This gives your trade room to breathe while keeping risk well-defined.<\/p>\n 4. Define Your Target: <\/strong>Depending on your strategy and market conditions, you can use:<\/p>\n<\/a><\/p>\n
What Is the Inside Bar Pattern?<\/h2>\n
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Why the Psychology Behind Inside Bars Matters?<\/h2>\n
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A Step-by-Step Approach to the Inside Bar Breakout Strategy<\/h2>\n
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