The candlestick trading bible
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137 THE CANDLESTICK TRADING BIBLE The inside bar candlestick pattern The inside bar candlestick pattern is one of the most powerful chart setup that professional traders look out; however, most traders fail to trade it successfully. Lack of skills and knowledge and poor education are the major reasons why most price action traders don’t make money trading this Japanese candlestick. What is an inside bar candlestick pattern? An inside bar is two candlesticks, the first one is called the mother candle, it is big and large, and the second one is smaller and it is located inside of the mother bar. 138 THE CANDLESTICK TRADING BIBLE The illustration above shows inside bars at tops and at bottoms, as you can see, the second small bar is completely contained by the first one which is the opposite of the engulfing bar pattern. The inside bar is seen as a reversal pattern, because it indicates that the market trend is likely to change especially when it is located at tops or bottoms. It is also considered as a continuation signal in strong trending markets. According to Thomas Bulkowski, a successful investor, and trader with over thirty years of market experience: A bearish inside bar pattern in a bull market can indicates a bearish reversal in about 65% of the time. And in a bull market, it represents a bullish continuation signal in about 52% of the time. |
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