The idea behind inside bar method is derive from wave theory of impulse correction and impulse.
Find any 2 wave traders and chances are they draw their wave differently.
Pattern get messy on smaller time frame, trend line are subjective, you get the point.
Not with inside bar, everything contain within the bar. You gotta have really great imagination if you see something different within 4-7 bars, it's just bars. You see the same bar I see, maybe some broker paint the bar slightly different.
Basically, a simplify method of trading wave without you bullshitting yourself into seeing something that not there.
How to identify Inside Bar:
1. This are usually very big bearish or bullish, for this example it's a big bearish weekly bar.
2. This bearish bar only become inside bar once you get minimum 2 bars (3 are ideal)
retracing inside the bearish bar measure from top of wick to bottom of the wick.
3. Only the close of the inside bar need to be within the bearish bar, the wick of the inside bar doesn't matter
Weekly inside bar are good for telling direction not for entry.
Find any 2 wave traders and chances are they draw their wave differently.
Pattern get messy on smaller time frame, trend line are subjective, you get the point.
Not with inside bar, everything contain within the bar. You gotta have really great imagination if you see something different within 4-7 bars, it's just bars. You see the same bar I see, maybe some broker paint the bar slightly different.
Basically, a simplify method of trading wave without you bullshitting yourself into seeing something that not there.
How to identify Inside Bar:
1. This are usually very big bearish or bullish, for this example it's a big bearish weekly bar.
2. This bearish bar only become inside bar once you get minimum 2 bars (3 are ideal)
retracing inside the bearish bar measure from top of wick to bottom of the wick.
3. Only the close of the inside bar need to be within the bearish bar, the wick of the inside bar doesn't matter
Weekly inside bar are good for telling direction not for entry.