Learn To Trade Price Action with Nial Fuller...
PRICE ACTION FOREX TRADING COURSE
This article will discuss the Inside bar trading strategy , a trading method I have used successfully for most of my trading career. My trading involves all methods pertaining to price action, they are not used in conjunction with indicators or other systems. I use a plain vanilla price charts tp look for the inside bar and other patterns as they form naturally on 240 minute and daily price charts.
What is an inside bar ?
An inside bar is a bar or series of bars which is/are completely within the range of the preceding bar, or , i.e. it has a higher low and lower high than the bar immediately before it (some traders use a more lenient definition of inside bars to include equal bars). On a smaller time frame it will look like a triangle.
What Does it mean?
An inside bar indicates a time of indecision or consolidation. Inside bars often occur at tops and bottoms, in continuation flags, and at key decision points like major support/resistance levels and consolidation breakouts. They often provide a low-risk place to enter a trade or a logical exit point.
When to use the signal
The most logical time to use an inside bar is when a strong trend is in progress or the market has clearly been moving in one direction and then decides to pause for a short time. If we play the break out, our stop loss can be defined by placing it below the half way point of the outside bar or mother candle, or for the more conservative trader, below the outside bar itself. This would mean that the market muse break a 3 bar low to take us out of the trade.
These inside bars are very good when trading a trend on the 240 minute charts and the daily forex charts.
Special Notes
More advanced traders may also identify market turning points when trading against the trend, but this wil take plenty of screen time to learn, so its not suggested for novice traders.
The Inside bar forex trading strategyis a flashing light, a major signal to the trader that reversal or continuation is about to occur.
See the example below for a classic inside bar break out, and a classic inside bar stall pattern.
See below example
For More Information on Trading Inside Bars, Check Out My Forex Trading Videos
Article by Nial Fuller – Copyright Learn To Trade The Market
Amaizing stuff Nial. Thanx for sharing.
Hi Nial it is indeed a great stuff for your inside bar strategy.I had close my position with 60pips of profit using your strategy on USDYEN trade on 11 Dec 2009.Thank!
Nice explanation. Most traders neglect to learn the basics before trading. So simple and effective.
hmm I am becoming perfect, i mean it…these are what traders need
You may be the best price action trainor in bussiness. Simple clean effective.
Very Informative and helpful! Thanks a million for every single artice and video you have in here Nial. I feel fortunate to have bumped in to your website.
I have been looking at inside bars at locations that you have mentioned; support, resistance, and trend continuations and fine them to be rather strong and fascinating little creatures.
Thank you Mr. Fuller
hello boss. you are a great ace .keep going and we are following ciao
Great stuff. Very informative and educative as well.
thanks Nial for this article…the explanation is very satisfying…i think inside bar strategy is the best..i have made profits on it all the time i have used it.
thank you
Nial,
Thanks for your contribution I am finding your material very useful indeed and it is helping my trading. I have one question about the Inside Bar strategy: How do you determine whether the inside bar set up is legitimate or if a Fakey set up is forming. Do you have to take the inside bar regardless and risk taking the hit and just reverse your position if you get stopped out?
Your input would be very much appreciated.
Many Thanks and good trading
Steve
I will adopt your system. Thank you for your wealth of knowledge.
Your clear and graphic illustration sure the teacher in you.It was good for newbies I like. Thanks for making me know more about fx.
great informatoins, all i can say is thank you
ur da best…
thanks for this wonderful piece of info.
very good explanation and lesson, tq Nial!
So, if I read this correcly; after an inside bar, the trade can go one of two ways – either with the prevailing trend or against it? Am I being thick – but what is the point of knowing that? How do I choose which way to place the trade?!? What am I missing? Thanks.
hi nial, you are making my head swell. have i been wasting my time elsewhere. thanks a million and i mean it
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damion said,
December 3, 2009 @ 2:38 amAs usual great stuff
Peace,
DR