Bearish
Inside Bar Candlestick
This is one powerful candlestick that if spotted a trader
should pay keen attention for what happens next, it is sometimes called a bear
harami candlestick/ pregnant candle pattern
Structure of the Bearish
Inside Bar Candlestick
Consists of two candlesticks - The first one big bear candle
and the second one small within the body of the first candlestick - it is the
opposite of the bear engulfing candle pattern
It is considered a reversal if it appears at a resistance
zone or continuation price action pattern if it appears in a downward trending market.
This candle pattern tell us that the bulls and the bears are
in a state of indecision (no body is in control of the market)
Bullish
Inside Bar Candlestick
Is the opposite of the Bearish Inside Bar Candlestick,
It is considered a reversal if it appears at a support or
continuation price action pattern if it appears in a upward trending market.
Psychology behind this
pattern
Indicates a period of consolidation- where both bears and
bulls are taking a small break before making its next move upwards or downwards
How to Trade this pattern
The best way to trade this candle formation is to wait for price to
break out of the pattern , with that you place a sell/ a buy order and a stop
loss just below the formation for the bullish inside bar and above it for a
bear inside bar.
Then you could use a risk to reward of 1: 2
No comments:
Post a Comment