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Inside Bar Outside Bar - VertexFX

Inside Bar Outside Bar is VTL Client Side indicator to identify the Inside Bar and Outside Bar candle patterns. Inside Bar is a price bar with its high less than previous bar’s high and low greater than previous bar’s low. They are marked by the red arrows in chart. Outside Bar is a price bar with its high greater than previous bar’s high and low less than previous bar’s low. They are marked by the blue arrows in chart.
Inside Bar Trading Strategy
An Inside Bar means a contraction in price range or volatility. It is a pause in price movement and does not show any strength in price direction. This will lead to a breakout from this trading range.
Identify the trend direction and place a stop buy order few pips above the high of the inside bar if the trend is up. In down trend place a stop sell order few pips below the low of the inside bar. Stoploss is placed few pips beyond the opposite end of the inside bar.
Outside Bar Trading Strategy
An Outside Bar means a short term expansion in price range or volatility. It shows strength in both directions. Look for outside bar at a resistance or support level. When outside bar is formed at a resistance level, sell breakdown of the low of the outside bar. When outside bar is formed at a support level, buy breakout of the high of the outside bar. Stoploss is placed few pips beyond the opposite end of the inside bar.

Attached Files

insideBar_outsideBar.zip (2.8 KB)