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Inside bar, the high of the bar is at or below the high of the prior bar and the low is at or above the low of the prior bar. | Inside bar, the high of the bar is at or below the high of the prior bar and the low is at or above the low of the prior bar. | ||
A close inspection shows reversals or breakouts that start from inside bars seem to have a '''higher tendency''' of failing and pulling back rather quickly. Inside bars indicate '''range compression''' and are usually triangles that formed on a lower time frame. | A close inspection shows reversals or breakouts that start from inside bars seem to have a '''higher tendency''' of failing and pulling back rather quickly. Inside bars indicate '''range compression''' and are usually triangles that formed on a lower time frame<ref>''Ali''</ref>. | ||
Both [[IB]] and OB are variants of trading ranges that form on a micro scale that are summarized into one or two bars on higher time frame. | |||
''Note that an inside bar needs to have a '''strong close''' to be a reversal signal, but a tail may be acceptable if its a failed breakout of a Trading Range''<ref>''NINETRANS''</ref>''.'' | |||
<references /> | <references /> | ||
[[Category:Trading Range]] | [[Category:Trading Range]] |