Inside bar breakout (H4)

Price action · Timeframe: H4 / Daily · Sessions: Any

A candle contained within the previous one signals compression; the breakout is traded with the trend.

How it works

An inside bar has its high and low within the previous candle (the 'mother bar'). It reflects indecision and orders building on both sides. A breakout of the mother bar's range in the direction of the trend often produces a directional move.

Step-by-step rules

1. Trend from the H4 EMA50.
2. Current candle inside the previous candle's range.
3. Entry on a close outside the mother bar in the direction of the trend.
4. Stop: at the mother bar's opposite end.
5. 2R target.

How Marketalyx tests it

Detector (H4): inside bar and a close outside the mother bar within ≤3 candles in the direction of the EMA50; stop at the opposite end; 2R target.

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Educational content. No strategy guarantees profits and past performance does not guarantee future results.