The Inside Bar candlestick pattern is especially used by professional traders to trade and make money in Olymp Trade. This is a candlestick pattern that offers a high probability of winning each time it appears on the Japanese candlestick chart. So what is Inside Bar? Why is it called a special pattern? How to trade using it? In this article, I will briefly and understandably present this candlestick pattern.
What is the special Inside Bar pattern?
The special Inside Bar pattern starts with a Pin Bar candlestick (called a Mother Bar). The Inside bars will only fluctuate within the price range of the Mother bar. There are 2 basic types:
Bullish Pin Bar + Inside Bar: The Mother bar will be a Bullish Pin Bar.
Bearish Pin Bar + Inside Bar: The Mother bar will be a Bearish Pin Bar.
How to trade using the Inside Bar candlestick pattern in Olymp Trade
To achieve trades with high win rates, you need to meet the following conditions:
Open an UP order when: Bullish Pin Bar + Inside Bar candlestick pattern is broken by a bullish candlestick that surpasses the highest price of the Mother bar.
Open a DOWN order when: Bearish Pin Bar + Inside Bar candlestick pattern is penetrated by a bearish candlestick that falls below the lowest price of the Mother bar.
Remember: The necessary condition is a special Inside Bar and the sufficient condition to open an order is a signal candle.
Review trades using Pin Bar and Inside Bar in Olymp Trade
Conditions: A 5-minute Japanese candlestick chart. The expiration time is 5 minutes.
Currency pairs: EUR/USD, GBP/USD.
1st order: On October 1, the GBP/USD currency pair created a special Inside Bar pattern. The Mother bar was Bullish Pin Bar and the Inside bars had an oscillating amplitude within the Mother bar. Then, in the market, a bullish candlestick appeared and surpassed the highest price of the Mother bar. Open an UP order with an expiration time of 5 minutes for $200 => Result: I won.
2nd order: On October 2, the GBP/USD currency pair formed the Bullish Pin Bar + Inside Bar candlestick pattern. The signal candlestick crossed the highest price of the special Inside Bar pattern. Opened an UP order with an expiration time of 5 minutes => Result: I won.
3rd order: On October 6, the EUR/USD pair did the same thing. The market created an Inside Bar with a Bullish Pin Bar as the Mother bar. The trading signal was a green candle that broke out from the highest price zone created by the previous Inside bars. Opened an Up order => Result: I won.
Since there was no Bearish Pin Bar + Inside Bar pattern in the market, there was no example of specific DOWN orders. See you in the following articles.
Do not dive into the market once reading an article about certain trading strategies that can make money in Olymp Trade. There have been too many lessons of loss shared on this website. Please read the article seriously and practice on a Demo account over and over for at least 2 weeks.
Please leave your questions below. We will listen and answer. Love!