Candle analysis provides for the use of patterns to assess the situation that is observed in the Forex market. There are a lot of such candle combinations. But they have different efficiency. Today I will tell about one of the patterns. This is internal bar . It occurs in the market quite often. Competent use of this pattern allows you to improve trading results. It consists of two candles. The range of the second candle is located inside the first candle range. Such a situation indicates uncertainty on the market. After consolidation, the market will resume movement in one direction or another. The trader should be able to predict the direction of this breakthrough and to open a trading position in a timely manner.

Internal bar criteria

Ideally, the first candle should have a large body with small shadows. The body of the second candle should be significantly less than the body of the first candle. At a minimum, twice. The shadows of the inner candle should also be short. The maxima or minima coincides is allowed on one of the parties. But if the ranges of two candles are the same, it will not be an internal bar. should also ignore the pattern in case the second candle is Dodii.

Rules for opening trade transactions

The first rule: we open trade orders only towards the trend. There are two options for entering the market. Those who admit increased risks to open the order with a trial of a maximum price or a minimum of the inner candle. Less risky option is the opening of the order when the maximum breakdown or the minimum of the first candle. To install Stop Loss, use extremes of the first candle. If you open an order for sale, then SL placing a few points above the maximum of the first candle. When opening an order for the purchase of stop loss, we set a little lower than the minimum of this candle. To fix profits, you can use different options. For example, a classic method: a Take profit size is 2-3 times higher than the size of the stop loss. In my example, Take profit is equal Range of the first candle. You can also use trailing stop. Any candle patterns work better on senior time frames. Internal bar – no exception. I recommend using it as a signal to enter the market on the clock and larger timeframes. To begin with, I advise you to look at this pattern on history. Try to apply it in the demo trade. After that, you can use an internal bar in real money trading. Inga Fedorova 11.12.2021 Record Inside bar. How to apply it in trade. For the first time appeared forex-for-you.ru.