Video Synopsis – EURUSD inside bar setup recap
This video is a recap of the euro-dollar inside bar setup discussed in the previous video. We were looking at an inside day bar that formed within the range of the previous bar that was a bearish rejection off the 1.4900 resistance zone.
The rule for the inside bar setup is that you want to see negative momentum on the intra-day charts if it is a bearish inside day trade, and opposite for a bullish inside day trade. This setup sold off very hard after the low of the inside bar and “mother candle” low broke. Price moved all the way to 1.4600 before pausing, I took profits near 1.4650, the session fell 150 pips after the inside bar low broke. This EURO setup made 120 pips profit for me.
I then discussed the possibility of this market making a 50% retracement of the major inside-day move discussed in this video. I would have looked to sell strength into this 50% retracement zone, as we look to sell strength in falling markets and buy weakness in rising markets.