Inside Bar
A candle whose entire high-to-low range is contained within the prior candle's range — consolidation and a potential breakout setup.
An Inside Bar forms when the current candle's high is lower than the prior high and the current candle's low is higher than the prior low — the entire bar is "inside" the prior bar's range. It represents a pause in price action: volatility compressed after a directional move.
Inside Bars are often used as breakout setups. Traders watch for price to break above or below the inside bar's range; a break in the direction of the prior trend signals continuation, while a break against it may signal reversal. False breakouts are common in choppy markets.
Example
After a strong bullish candle breaks a key resistance level, the next day forms an Inside Bar — the market is digesting the move. A bullish trader sets a buy-stop above the Inside Bar's high, expecting continuation.
Related Terms
Bearish Harami
A large bullish candle followed by a small bearish candle inside the first — upside momentum is fading at the top of an uptrend.
BeginnerBullish Engulfing
A large bullish candle that completely wraps the prior bearish candle's body — a strong demand-takes-control reversal signal at the bottom of a downtrend.
BeginnerBullish Harami
A large bearish candle followed by a small bullish candle inside the first — downside momentum is stalling at the bottom of a downtrend.
BeginnerHarami
A two-candle pattern where the second candle's body is fully inside the first candle's body — momentum is losing steam and a pause or reversal may follow.
BeginnerOutside Bar
A candle that engulfs the prior candle's entire range — high-to-low — showing a sudden expansion of volatility and a potential directional shift.
BeginnerPin Bar
A candle with a small body and a long wick on one side — a sharp price-rejection signal widely used in price-action trading.
BeginnerRising Three Methods
Bullish continuation: a long bullish candle, three small bearish candles contained within its range, then another large bullish candle — the uptrend resumes.
Intermediate