Inside bars

[klastica]

I'm up to page 91 on trader_dante's thread.
I think I have a real good handle on what a pin bar is. People in the thead (including TD) keep talking about trading inside bars. I'm not really sure what one is.
Can someone please explain? Or even better post a chart or too with good/bad examples.

 

[intradaybill]

An inside bar is one with a high lower than previous bar's high and a low greater than previous bar's low. So it "fits" inside the previous bar.

Similarly, an outside bar is one in which the previous bar "fits" inside.

You can also have consecutive inside or outside bars and combinations thereof.

Such formations usually indicate an undecided market.

Breaks from inside/outside bars are often considered short-term direction indicators. Watch out for confirmations first.

 

[foredog]

Click on the 2nd link at the bottom of my signature, i only did the journal for a few weeks but there should be a bit to point you in the right direction

 

[klastica]

Thanks foredog and intradaybill - I think I got it now