Inside Bar Forex strategy — a popular strategy with an excellent win/loss ratio but a relatively rare occurrence of the proper trade entry conditions. It doesn’t require forex indicators and can be applied on the bare candlestick or bar chart.
Inside Bar Forex Trading Strategy Features
- Entry conditions are clearly defined.
- Straightforward bare chart system.
- High success rate.
- The rare occurrence of the proper conditions.
How to Trade?
- An inside bar is a bar or a chart candlestick that completely fits into the first preceding bar (also called a “container” bar), including its High and Low values.
- If the current chart bar has an index of 0 and the previous bar has an index of 1, then the following conditions should be true for the current chart bar to count as an inside bar: High < High and Low > Low. Mind the strict “greater” and “less” operators.
- A bearish inside bar that follows a bullish “container” bar on the visible uptrend signals a Short position.
- A bullish inside bar that follows a bearish “container” bar on the visible downtrend signals a Long position.
- Stop-loss(SL) is set to the Low of the “container” bar for the Long positions and the High of the “container” bar for the Short sell positions.
- Take-profit(TP) should be set to the nearest support/resistance level formed by the trend.
A bullish inside bar after a chart downtrend is shown on the example mt4 chart. The inside bar is easy to identify, and the stop-loss(SL) level is conservative here. Set the target to the resistance level formed by the previous downtrend. As you can see, the mt4 currency pair rate reached the take-profit level without any problems.
Use this strategy at your own risk. fxcracked.com site can’t be responsible for any losses associated with using any forex strategy presented on the fx cracked site. It’s not recommended to use this forex strategy on the real account without testing it on the demo first.
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