on WTI we have a perfect example of pattern on a .
An is a series of bars or sometimes just one bar that is contained within the range of the preceding bar (mother bar).
The first rule that we should take into account is that inside bars must have a higher low and lower high than the mother bar.
The second rule is that we trade this pattern only after or breakout of a mother bar trading range.
The logic behind is simple. It indicates a time of indecision and market consolidation. Inside bars typically occur as a market consolidates after making a large directional move ( on WTI), you also can see this pattern at key decision points like major support or resistance levels.
For WTI our plan is to wait until a violation of a trading range.
Remember that the candle MUST close below or above the range before we take any action!