- By Sheraz
- November 25, 2025
It helps traders spot potential breakouts and trends. To make more money in trading, it’s key to know and use inside bar patterns well. Inside bar patterns come in different types, like bullish, bearish, and multiple inside bars. Knowing these patterns is key for traders, mainly in fast-moving markets like forex. For traders, knowing about inside bar patterns is key. They help spot when the market might be consolidating or about to change direction.
The double inside bar set up is a three candle formation of two inside bars. The second candle plays both the part of an inside bar to the first candle AND as the mother bar to the third candle. MACD is a unique indicator that can be combined with the inside bar pattern. The MACD is a trend following tool and when you have a consolidation pattern like inside bar, the MACD can provide insight to the potential direction of the breakout.
Find the existing trend using the technical indicators or price action analysis. Locate a candlestick that is completely engulfed by the preceding candle’s high and low. If the preceding bar is a red candlestick, the Inside Bar will be a green candlestick, and if the preceding bar is a green candlestick., the Inside Bar will be a red candlestick. Look for an inside bar at the top or bottom of a trend. Look for an inside bar that forms at a major support or resistance level. HomeLearnCFD Trading StrategiesHow to trade the inside bar candlestick pattern
Many traders can reach up to 65%, depending on their skill level. Other traders may use a trailing stop instead of waiting for some time (with no guarantee of a favourable outcome) for the market to reach the key level. This approach is designed to help you lock in profits more consistently at predetermined increments. As a bonus tip, you can confirm the strength of the breakout in a shorter time frame.
The inside bar pattern features two successive candlesticks that typically indicate a market consolidation or uncertainty phase. Recognising this setup can benefit traders and analysts, as it offers clues about possible future price trends. In this article, we will examine various instances of this pattern on price charts and delve into how to interpret its signals for trading strategies.
A trading strategy consists of many confluences that make a strategy tradeable. Without confluences, you will not be able to make a profit obviously. The inside bar is the best candlestick pattern and I have used price action with the inside bar candlestick and made the best tradeable strategies. By learning how to trade Inside Bars and recognizing their structure, traders can improve accuracy in predicting price movements and managing risk. Remember, successful trading with Inside Bars relies on carefully identifying Inside Bar patterns, understanding market conditions, and applying a well-structured exit plan. Its trustworthiness always depends on the market context.
In consolidating markets, however, they may lead to more false signals. Daily and 4-hour charts are the most reliable for trading Inside Bars, as they reduce noise and offer stronger signals. However, day traders can use lower time frames, but these may produce more false signals. This often occurs in choppy markets or when the breakout lacks momentum. To avoid falling into a fakeout, traders should wait for additional confirmation, such as strong follow-through candles or volume increase.
It’s wise to risk only a small part of your total capital on one trade, usually 1-3%. This helps protect against big losses if the market goes against your trade. The financial products offered by the promoted companies carry a high level of risk and can result in the loss of all your funds.
Fortunately, traders can use scanners to automate the process and other indicators to confirm the setups, creating a more efficient strategy. After that pause in price action, you can find an inside bar trade. When combined with other tools or indicators, trading with the inside bar provides an excellent and straightforward smart trade management strategy.
Inside bars are one of the most overlooked yet powerful patterns in any trader’s toolkit. At first glance, how to trade inside bar they appear small and unimportant — but they tell a critical story about the market. An inside bar reflects hesitation, a pause in momentum, and a buildup of energy. When that energy is finally released, it often leads to sharp, directional moves that can offer exceptional risk-reward opportunities. In the forex market, inside bar patterns are also used.
Generally, the longer the time frame, the better the signals the inside bar pattern provides. However, the pattern is certainly more suitable for short-term trading techniques. If you are a scalper, you can use the inside bar in a 15-minute timeframe or lower.
Unlike inside bars, spinning tops are neutral single-candle patterns that mark a point of market equilibrium. In this scenario, buyers and sellers battle to control the price, with each party being successful at certain points during the trading session. However, the session ends with neither party taking control, marking indecisive market sentiment about which direction the price will move next. Therefore, when the inside bar forms, the pattern hints that the market is consolidating the previous trend.
