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Inside Bar Swing Trading

There are several high probability swing trading scenarios involving inside bars (IBs). The way IBs close provides clues about future price direction. IBs with wicks pointing in the same direction and room to move below offer strong signals. Examples given include IBs at swing lows with wicks pointing up, signaling an eventual breakout to higher prices. IBs forming at swing highs with wicks pointing down similarly signal an upcoming move lower once support is breached.

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Manoj Rai
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385 views4 pages

Inside Bar Swing Trading

There are several high probability swing trading scenarios involving inside bars (IBs). The way IBs close provides clues about future price direction. IBs with wicks pointing in the same direction and room to move below offer strong signals. Examples given include IBs at swing lows with wicks pointing up, signaling an eventual breakout to higher prices. IBs forming at swing highs with wicks pointing down similarly signal an upcoming move lower once support is breached.

Uploaded by

Manoj Rai
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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CANDLESTICK INSIDE BAR SWING TRADING

There are a several high probability scenarios in which inside bars (IBs) offer fantastic swing entries. And
while it is crucial to pick the right wave when swing trading, the way IBs close is the main giveaway as to
where it is headed next. Take note of the following properties before exploring different scenarios;
A long and biased wick in a particular direction on the mother candle and in sidebar, signals a desire for
price to flow in that particular direction.
A bullish close with a high wick followed by another candle with similar characteristics sparks momentum
for a breakout and continuation of a bullish move. Same is true for a bearish close with a long wick to the
downside.
An IB is either the result of a tight range and slow moving market or the calm before the storm and a major
move on the charts. The latter is less common.
Scenario 1

All IBs have been marked and to the untrained eye it’s a 50/50 chance of getting it right or wrong.
These particular IBs are of highest interest not only because they have lot’s of potential(plenty of room to
move) but because both candle wicks pointing to the same direction.
Room to move is key for IB setups to fully flex, especially if sentiment is mixed or not in favor. The following
scenarios below take lead from the same concept above.

Swing low
Price was ranging at swing low and building momentum. The swing lower was clean and smooth in price
action terms. At the bottom price produced IBs with decisive wicks pointing up. Eventually the range gave
way and broke to the top.
Swing low
Price was very indecisive leading down to the swing low. Several IBs with decisive wicks pointing higher.
With plenty of spaced to move into, produced a clean-cut signal.
Swing high

Price started to range at swing high. IBs on the top of the range signaled a move lower. With enough
clearance to the left of the chart price made a run for the lows.
Swing high

Price got caught up in a range in the form of a double top at swing high. Several candles including IBs had
wicks pointing down the way. Once floor got swept price slid lower.

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