Category:IB

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^[1].

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^[2].