Inside Bar Pattern Trading Strategy


Inside Bar Pattern Trading Strategy — with David Moadel hello friends and welcome to looking at
the markets with David Modell today I’m going to tell you the basics of the
inside bar pattern and that also comes with a trading strategy please note that
none of these strategies work 100% of the time okay so you want to make your
own decisions and maybe use other indicators with it for confirmation if
you want to and by the way I’m gonna give you this pattern but if you want
help putting together a trading or investing plan because you really should
have a plan otherwise you don’t know where you’re going and what you’re doing
you can email me for coaching at David Modell at gmail.com alright so this is
the inside bar pattern is a two candlestick pattern in which the second
of the two candlesticks is contained within the first candlestick and that
includes when I say contained within that includes the wicks or shadows and
so the first or bigger candlestick is sometimes called the mother bar while
the second or smaller candlestick is sometimes called the inside bar so you
see how when you include the the wicks or shadows the second candlestick the
smaller one is contained entirely within the first one all right and so again
second one’s contained within the first one alright or the inside bars contained
within the the mother bar there including the wicks or shadows alright
and the colors of the two candles candlesticks are not as important as
just the fact that the second one’s contained within the first one that’s
called the inside bar pattern and if you know about the haram ii and i do have a
video on that yes this is similar to the haram e to Candlestick to candlestick
pattern though in my experience the haram ii
tends to focus on the body only of the candlesticks while the inside bar
pattern tends to focus on both the body and the the wicks alright or shadows
alright so that’s that’s the main difference also in my experience the
haram ii pattern tends to focus on reversals you know so the candlesticks
are going down down down and then the her ami
kurz and then they might go up up up whereas the inside bar pattern tends to
focus on continuations of the prevailing trend and so you might have candlesticks
going up up up and then a consolidation period and you know with the inside bar
pattern and then it continues upwards as opposed to the Rami which tends to be
more of a reversal pattern alright so you can view the the inside bar pattern
as a brief consolidation or pausing period before the prevailing trend
continues in that same direction so like I said you know you could have
candlesticks going up up up and then two candlesticks an inside bar pattern going
sideways and then it continues upwards and it could also be the opposite the
candles could be going down down down and then to sideways ones you know the
inside bar pattern and then continues going down so what’s the strategy that
you could use and again it does not work every time alright but to trade it you
can draw a horizontal resistance line at the top of the upper wicker shadow of
the mother bar the first of the two candlesticks then you can enter with a
long position if a candlestick decisively clearly closes above that
resistance line with heavy volume so you want to have some sort of volume
indicator as well and your stop-loss can be at the bottom of the lower wick or
shadow of the mother bar all right so here a couple of examples all right and
so you’ve got the prevailing trend up up up and then you’ve got two candlesticks
in a row it just kind of takes a breather going sideways but you have the
second candlestick including the wicks or shadows contained entirely within the
first one alright and you could draw a horizontal resistance line over here at
the top like I said right if you want to draw if you want to you know use this as
a strategy you can draw a horizontal resistance line at the top of the upper
wicker shadow of the bigger one the other bar okay and then the the
stop-loss would be at the bottom of that same candle the mother bar right so you
know you like over here you could have drawn a resistance line at the top of
the the wick or shadow of the mother bar and then a you know and that would if it
breaks through it which it did here very decisively but you know and we don’t
have the volume down here but if the volume was strong which it probably
would be for a candle this size then you could take a long position and ride it
all the way up we have another example here and the stop-loss would be at the
bottom it could be at the bottom of that that mother bar as they call it the the
first of the two candles all right put the you know support I you know that
that would be not just a support but actually a stop loss there okay and then
we have another example here of the inside bar pattern this one is contained
entirely within this one and it did work it broke above it could have taken a
long position it came down but it didn’t go past the stop-loss if you made a stop
loss at the bottom of this wick or shadow here of the first of the two
candles so it didn’t hit the stop loss and it kept going up and that’s good
news alright let’s take a look at a real-life
example here on tradingview dot-com you can see it was going up gradually okay
but then it took a breather and this candle including the wick is contained
entirely inside of this one so you have the the pattern here the inside bar and
then it went up up and away alright it does not always work but you
know it could work like that alright so again if you want some more help you
want some coaching on this I do offer that it’s David Modell at gmail.com you
can hear my email me for the coaching and if you like this video hey do me a
favor please give it a thumbs up on YouTube and that lets me know that you
want to see more videos with strategies and patterns like this one and leave a
comment if you want to let me know what you think of this pattern does it work
have you tried it do you think it’ll work
hey if you tried it let me know even if you haven’t tried it let me know what
you think and if you haven’t subscribed to my
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YouTube whenever I put out videos like this one hey thanks a lot I really
appreciate it I’ll talk to you again soon

13 thoughts on “Inside Bar Pattern Trading Strategy”

  1. I have seen this strategy before but never placed a trade using this strategy. Great explanation David 🙂

  2. Visa two minute chart today at 10am pst inside bar after a failure to make a new high above and stock finally moving down. It’s funny was watching this took my eye of a visa and like magic the play was there as david was sharing it
    Not a huge move done on visa but a quick .20 scalp
    Thanks david and if anyone is thinking of coaching david is the best!!!

  3. Awesome, ya Ive been always on the lookout for reversal signals and didnt think as much to look for continuation patterns, great video

  4. Appreciate your knowledge once again. I have traded this rarely, sometimes still going with price action. The volume you mentioned is always something I look gor for on new trades as well. Thanks David.

  5. Thank you sir! I stumbled upon your channel a few days ago while looking for information on heiken ashi candles. Your information is very concise, straightforward and to the point. I am appreciative and grateful for your work. All the best!

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