Inside Bar V2 Indicator
Inside Bar indicator is a suitable trading tool for identifying reversal and continuation signals based on the inside bar trading strategy.
Description
Inside Bar v2 is one of the best trading strategies. It involves an inside bar and a mother bar. Essentially, the two-bar formation involves an inside bar that forms within the mother bar, the immediate preceding bar. This means that the high of the inside bar must be lower than the high of the mother bar. Similarly, the low of the inside bar must be higher than the low of the mother bar. Generally, the mother bar engulfs the inside bar.
The trading method can act as a continuation signal when the price breaks above or below the high or low of the mother bar. Similarly, it acts as a reversal signal when it appears at the resistance or support level.
How to Trade the Inside Bar V2 Indicator
Essentially, the indicator does the donkey work of identifying the inside bar. You only need to place a buy-stop trade above the high of the mother bar or a sell stop below the low. The best part is that the indicator alerts you when the insider bar forms. The low of the inside bar is indicated by a green dot, while a red dot indicates the high.
Trading Example
The chart shows the price movement for the Euro against the US dollar. The inside bar forms within the mother bar’s low and high, giving a buy reversal signal. The indicator highlights the inside bar. Notice how the market experiences a sustained uptrend after the signal.
Conclusion
The inside bar notification helps you to trade using the inside bar trading strategy. Essentially, it detects the inside bar within the mother bar. It enables you to identify the inside bar and quickly place a trade. It is a must-have tool for inside trading.