The Inside Bar (Inside Bar) is two candles: a large candle (the mother), then a smaller one whose range (high and low) sits entirely inside the first's range. It reflects a contraction in volatility and a temporary balance that often comes before a burst of movement in the direction of the breakout.
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PATTERN ID
SignalNeutral ◆
Reliability★★★☆☆
Win Rate53%
Expected moveVariable
TimeframeAll timeframes
ConfirmationRequired
The short answer
What is an Inside Bar candle?
The Inside Bar (Inside Bar) is two candles: a large one (the mother bar), then a smaller one whose whole range (high and low) sits inside the first. It reflects shrinking volatility and a short-lived balance that often comes before a sharp move in the breakout direction.
How do you recognize an Inside Bar candle?
The second candle is smaller and sits entirely inside the range of the first: its high is below the first's high and its low is above the first's low. It marks a contraction in volatility (consolidation).
Is the Inside Bar candle bullish or bearish?
A hesitation / consolidation pattern made of two candles. Confirmation: required. Reference success rate 53%. You can spot it yourself on live daily candles for any symbol in the members' technical terminal. Open the technical terminal →
Pattern illustration
A small candle fully contained inside the range of the parent candle
How to identify the pattern
Step-by-step checks
The second candle is smaller and sits entirely inside the first candle's range
The second high is below the first high, and its low is above the first low
Marks a volatility squeeze (consolidation)
The signal comes from the direction of the break of the mother bar's range
Trading psychology
The power struggle between buyers and sellers
After a wide candle the market calms and hesitates in a tighter range, a short balance between supply and demand. That squeeze stores energy, which often releases hard when the mother bar's edge breaks.
Outlook and confirmation
Entry conditions and expected price move
Needs confirmation in the next session
Trading the breakout: buy above the mother bar's high, sell below its low. Expect a larger move in the breakout direction. A stop at the opposite edge.
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