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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. | |||
'''''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>''.'' | '''''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]] |