Blackhole

Well-Known Member
#7
How to Trade with Inside Bars





Inside bars can be traded in trending markets in the direction of the trend, when traded this way they are typically referred to as a ‘breakout play’ or an inside bar price action breakout pattern They can also be traded countertrend, typically from key chart levels, when traded this way they are often referred to as inside bar reversals.

The classic entry for an inside bar signal is to place a buy stop or sell stop at the high or low of the mother bar, and then when price breakouts above or below the mother bar, your entry order is filled.

Stop loss placement is typically at the opposite end of the mother bar, or it can be placed near the mother bar halfway point (50% level), typically if the mother bar is larger than average. It’s worth noting that these are the ‘classic’ or standard entry and
stop loss placements for an inside bar setup, in the end, experienced traders may decide on other entries or stop loss placements as they see fit.

Let’s take a look at some examples of trading with the inside bar strategy:

Trading Inside Bars in a Trending Market

In the example below, we can see what it looks like to trade an inside bar pattern inline
with a trending market. In this case, it was a downtrending market, so the inside bar pattern would be called an ‘inside bar sell signal’:



Here’s another example of trading an inside bar with a trending market. In this case, the market was trending higher, so the inside bars would be referred to as ‘inside bar buy signals’. Note, often in strong trends like the one in the example below, you will see multiple inside bar patterns forming, providing you with multiple highprobability
entries into the trend:




Trading Inside Bars against the Trend, From Key Chart Levels In the example below, we are looking at trading an inside bar pattern against the dominant daily chart trend. In this case, price had come back down to test a key support level , formed a pin bar
reversal at that support, followed by an inside bar reversal. Note the strong push higher that unfolded following this inside bar setup.




Here’s another example of trading an inside bar against the recent trend / momentum and from a key chart level. In this case, we were trading an inside bar reversal signal from a key level of resistance. Also, note that the inside bar sell signal in the example below actually had two bars within the same mother bar, this is perfectly fine and is something you will see sometimes on the charts. Trading inside bars from key levels of support or resistance can be very lucrative as they often lead to large moves in the opposite direction, as we can see in the chart below…





Tips on Trading the Inside Bar Pattern


As a beginning trader, it’s easiest to learn how to trade inside
bars inline with the dominant daily chart trend, or ‘inline with the trend’. Inside bars at key levels as reversal plays are a bit trickier and take more time and experience to BEcome proficient at.

Inside bars work best on the daily chart time frame, primarily because on lower time frames there are just too many inside bars and many of them are meaningless and lead to false breaks.


Inside bars can have multiple inside bars within the mother range, sometimes you’ll see 2, 3 or even 4 inside bars within the same mother bar structure, this is fine, it simply shows a longer period of consolidation, which often leads to a stronger breakout. You may see ‘coiling’ inside bars sometimes, these are inside bars with 2 or more inside bars within the same mother bar structure, each inside bar is smaller than the previous and within the high to low range of the previous bar

Practice identifying inside bars on your charts before you try trading them live. Your first inside bar trade should be on the daily chart and in a trending market.

Practice identifying inside bars on your charts before you try trading them live. Your first inside bar trade should be on the daily chart and in a trending market. Inside bars sometimes form following pin bar patterns and they are also part of the fakey pattern (inside bar falsebreak pattern), so they are an important price action pattern to
understand.

Inside bars typically offer good risk reward ratios because they often provide a tight stop loss placement and lead to a strong breakout as price breaks up or down from the pattern.



sOURCE : price ac t i o n pdf / p ri c e action. c o m author : n e i l fu ll er
 
Last edited:

DSM

Well-Known Member
#8
Blackhole,

While the post in the thread are appreciated, kindly ensure to post the link to the original article, and not just quote it. The author as well as the site deserves credit when material is taken, and it is a matter of ethics as well as copyright.

Thanks.
 

Blackhole

Well-Known Member
#9
Golden Rules for Trading


THE MARKET PAYS YOU TO BE DISCIPLINED.

ALWAYS LOWER YOUR TRADE SIZE WHEN YOU’RE TRADING POORLY.

BE DISCIPLINED EVERY DAY, IN EVERY TRADE, AND THE MARKET WILL REWARD YOU. BUT DON’T CLAIM TO BE DISCIPLINED IF YOU ARE NOT 100 PERCENT OF THE TIME.

NEVER TURN A WINNER INTO A LOSER.

YOUR BIGGEST LOSER CAN’T EXCEED YOUR BIGGEST WINNER.

EARN THE RIGHT TO TRADE BIGGER.

DEVELOP A METHODOLOGY AND STICK WITH IT. DON’T CHANGE METHODOLOGIES FROM DAY TO DAY.

EARN THE RIGHT TO TRADE BIGGER.

GET OUT OF LOOSERs.

BE YOURSELF. DON’T TRY TO BE SOMEONE ELSE.

YOU ALWAYS WANT TO BE ABLE TO COME BACK AND PLAY THE NEXT DAY.

THE FIRST LOSS IS THE BEST LOSS.

DON’T HOPE AND PRAY. IF YOU DO, YOU WILL LOSE.

DON’T WORRY ABOUT NEWS. IT’S HISTORY.


NEVER TAKE A BIG LOSS. ONLY A BIG LOSS CAN HURT YOU.

DON’T SPECULATE. IF YOU DO,YOU WILL LOSE.

MAKE A LITTLE BIT EVERYDAY. DIG YOUR DITCHES. DON’T FILL THEM IN.

TAKE SINGLES NOT SIX RUNS.

CONSISTENCY BUILDS CONFIDENCE AND CONTROL.

LEARN TO SWEAT OUT (SCALE OUT) YOUR WINNERS.

MAKE THE SAME TYPE OF TRADES OVER AND OVER AGAIN – BE A BRICKLAYER.


DON’T OVER-ANALYZE. DON’T PROCRASTINATE. DON’T HESITATE. IF YOU DO,YOU WILL LOSE.

ALL TRADERS ARE CREATED EQUAL IN THE EYES OF THE MARKET.


IT’S THE MARKET ITSELF THAT WIELDS THE ULTIMATE SCALE OF JUSTICE.
 

Blackhole

Well-Known Member
#10
BreakOUTs NR4/NR7 / NR21

Narrow Bar NR7 for seven days / NR4 for 4 DAYS / NR 21 for 21 days


Daily BARS

When market trades in narrow range. On daily charts when market spends the entire day in tight range and ends up closing in it and it is .

The NR7 is based on the high-low price range that is the smallest of the prior six days (seven days total). When an NR7 occurs, it means that today's price is the narrowest of the seven days.

Use a filter of 200 /100 /50 moving avg of your choice as a filter or Divergence to avoid whipsaws.

Take a trade of breakout on nr7 day.

Success of this setup is good on trending days.





If daily or weekly charts shows downtrend tight range suggests consolidation, take breakdown trade but if daily bar is inside bar/pin bar on support it can be reversal as well.




can be used nr4 -7 -21 on hourly charts as well


awesome thread on the same by AW10 NR7 setups


source : many articles ,forums / charts from stock charts . c om
 

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