Get started

Inside Bar

Inside day after earnings-SprintInside day after earnings is one of my favorite trade. Most stocks have much higher volatility on their earnings day and it creates lots of trading opportunities for short-term to mid-term trading. The philosophy of inside bar is about "neutral","choppy","wait","rest","digest", so an inside day after earnings is like the market still tries hard to figure out the earnings report. Therefore, when the other day the market is able to break either side, it's worth participating as there are many better analysts making their final decisions. The trade is to put a buy stop 1 cent higher the inside day high and put a sell stop 1 cent lower the inside day low, which means when it breaks to the upside first we long; when it breaks to the downside we short. I don't really suggest to trade this Sprint while it a good example for this trade today, let's see which way it breaks and how it goes!
NYSE:S
by Trader_Joe_Lee
USDCHF, best example for Harmonic pattern/Inside bar combinationAs I drew the huge daily BAT pattern last week, USDCHF gave an inside day after the D point of the BAT, and it broke to the upside as what I want to see. This combination provided a 200 pips bounce and a potential reversal; Most of the time, harmonic pattern trade actually fights with the current trend in the time frame given, so what we need to wait is reversal sign like inside bar breakout or double top/double bottom to confirm the trade.
by Trader_Joe_Lee
USDCAD 4hr shooter, looks deja vu right?USDCAD has a 4hr shooter after new session low, looks similar to my last artical about EURUSD! My idea again, is to short the breakdown despite it's already on the floor. Only 10-15 pips risk, worth trying! The mindset is like: I'm a normal guy, everyone who tried to catch the falling knife and tried to find a out on the chart to long USDCAD probably is already shaken out, then how could I believe I am so special to be the one that ends the winning streak?
Short
by Trader_Joe_Lee
USDCHF Daily Bat PatternUSDCHF completed the bat pattern today, to trade the bat perfectly we'll have to risk about 100pips. While like how I applied harmonic pattern these days, I'll wait for the following potential reversal sign to long USDCHF rather than put a buy limit to fight with the trend. 1. Significant inside bar breakout 2. Hammer 3. Double bottom Not only on the daily chart but also on smaller time frames, if the market didn't give any of these in any time frame, then I probably won't long this pair. If so, as a harmonic pattern learner, of course it's worth trying!
Long
by Trader_Joe_Lee
AUDUSD Inside 4 hour, outstanding risk-reward ratio!Inside bar setups work the best when there is momentum, and momentum comes from news, fundamental events, chart patterns, short squeezing, and many other ways. The 2 inside 4hr bars for AUD/USD implied great risk-reward ratio! 1st one only 25pips risk and gave an 150 pips move; 2nd one only 10 pips risk and gave an 90 pips move! The larger the time frame, the higher the winning percentage for inside bar trades. While frankly speaking, it's slightly higher than 50% winning percentage only (yes, like toss coins), but the point is it provides a great risk-reward ratio and able to make money even with 50% winning percentage. that's the whole story about inside bar setup.
Education
by Trader_Joe_Lee
USDCAD, Cypher+inside dayThis page is all about inside bars and harmonic patterns, and I got 1 potential trade that is in line with 2 of the strategy! USDCAD completed a huge Cypher pattern, while like what I said on COST (another harmonic + inside day breakout combination yesterday), I believe harmonic pattern needs to go with reversal/retracement sign rather than just put an anti-trend limit order. here I got the inside day and if it's able to break to the upside, I am turning a little bit bullish on USDCAD and will find some smaller time frame trades.
Long
by Trader_Joe_Lee
2
Another inside bar PARTY for XAUUSD on Friday after NFPLet's start from the beginning... My Inside bar trade will be: Entry: put buy/sell stop @ 1 cent above/below an inside bar that formed after an important level or a huge price movement to long/short. out: for long, 1 cent below inside bar low; for short, 1 cent above inside bar high 1st Price target: put half of the position off by limit order at 1:1 to the risk ( ex: entry@1220, out@1225, then put half of the position buy limit @ 1215). once the price reached 1st PT, that makes the trade at least risk-free, A.K.A a successful trade. Then I can do whatever I want to the rest of my position like trailing the price by adjusting stop with the trend, or book any profit I want. This set-up works the best when there is a huge news like NFP. Just like the USOIL last week, XAUUSD inside bars were AWESOME. After NFP, it gave 5 inside bars after new lows and all of them broke to the downside and became successful short. Even if you were willing to long the 6th inside bar that broke to the upside, it worked! While most of the time I prefer to trade inside bars that broke with the trend rather than broke against the trend.
FX:XAUUSD
by Trader_Joe_Lee
Inside Bar party for USOIL short sellers.To begin with, yesterday was an inside day for USOIL and it broke to the downside . An inside day breaking to the downside may be a trade itself or a bearish view to find smaller time frame set-ups to short. In terms of hourly chart, almost all inside hour short set-ups worked! Inside bar is a great strategy to be involved with a trend by very little risk, so when there is a downtrend, finding inside bars as short set-ups can be a solid strategy. In terms of risk, I may put my out to the initial bar high if the range of the inside bar is just to narrow; also, it's better to combine EMA as an indicator to see if the out catches 8EMA or 21EMA--to avoid being shaken out by a little bit price correction. There will be lots of inside bars during consolidation and none of them worth trading; while inside bars on important spot like higher highs or lower lows are definitely worth watching. As the directions thy broke translate the initial upside/downside moves for you! In recent USOIL examples, I only look for inside bars on important spots that broke to the DOWNSIDE (as the inside day breaking to the downside created an bearish view) and many of which gave great continuations.
TVC:USOILShort
by Trader_Joe_Lee
2