Power Pattern III: The Inside Bar
The calm before the storm. An Inside Bar represents consolidation and energy buildup.
Identifying the Setup
- Mother Candle: A large candle giving the range.
- Inside Candle: A smaller candle completely contained within the High and Low of the mother candle.
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The Breakout Strategy
The market cannot stay compressed forever. When it breaks, it breaks hard.
- Mark the Mother Candle: Draw lines at the High and Low.
- Wait: Do not guess the direction.
- Trigger: Enter the trade only when price closes outside the Mother Candle range.
Live Market Application: Look for Inside Bars on BankNifty between 12:00 PM and 1:30 PM. The breakout usually sets the trend for the afternoon session.
*Disclaimer: NSE/BSE frequently revise Lot Sizes and Expiry Days (e.g., SEBI Circulars 2024/2025). Always check the latest circular on nseindia.com before trading.
Standard Disclosure: Investment in securities market are subject to market risks. Read all the related documents carefully before investing. The content provided here is for educational purposes only and does not constitute financial or investment advice. AlgoStraddle Academy is not a SEBI registered investment advisor. Trading options involves high risk and capital can be lost.