CautiousChartist

INSIDE BAR STRATEGY

Education
NSE:MAGADSUGAR   MAGADH SUGAR & ENE
I've never been a fan of fancy indicators because price action is best leading indicator out there.

This is one of the most popular and effective strategies for short term.

I prefer the 3 candle compression because it works for me more often.

One can experiment as per their liking with just 2 candles or more than 3 candles.

Strategy is once the first 2 candles are formed, the Inside Bar Strategy is activated. All you need to do then is to place a Buy Trigger above the High of the Mother Candle.

Not all inside bar candles work all the time and quickly. Sometimes it can test your patience. The position where it has occurred, the trend of the stock, sector, market also have to be considered.

The innumerous requests asking for ready made screeners can implement this and create a screener for yourself but when and how to effectively use it will only come with experience when you put in the hard hours understanding price action.

Good Luck !
Comment: In case of short trade, it is the opposite. The Breakout zone becomes the low of the Mother Candle.
Trade closed: target reached: And you can see how the strategy worked. Target met for the inside bar strategy.

Comments

Good content.one clarification ,breakout side we have to trade right?
+1 Reply
CautiousChartist Priya_Kanmani
@Priya_Kanmani, Thanks and Yes, on the breakout side.
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you are a legend
+1 Reply
CautiousChartist Arthvardhan
@Arthvardhan, Nope not at all. I'm damn bad with intraday.
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Arthvardhan CautiousChartist
@CautiousChartist, me too. intraday not matching my personality.
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@CautiousChartist : #Doubt #Learning - Kind Clarification Please: Thanks a lot in Advance.

If the Mother Candle- is in Green & the subsequent Baby Candles are in Red (well within compression zone) - Then would it be a Bearish Indication or would it be a Bullish Indication? (Considering only the technical aspect)
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Price action for swing trades well explained.
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Hi, this Pattern looks interesting and I came across similar pattern in BPCL stock and I consider 27th may candle as Mother Candle.Can u please check and let me know whether im right?
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1. does volume play any role in it?
2. continuous increase in volume is good or bad in any stock.
3. Can this strategy called as triangle patter.

Please answer. I am learning from you.
Reply
CautiousChartist Arthvardhan
@Arthvardhan, Volume always gives additional confirmation. If the high of the mother candle is broken, in 99% cases there will always be supporting volume. Volume increase with red/green indicates the strength of buyers and sellers. Red is negative. You can call it a triangle pattern if you like to remember it that way.
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