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 !
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In case of short trade, it is the opposite. The Breakout zone becomes the low of the Mother Candle.
Trade closed: target reached
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And you can see how the strategy worked. Target met for the inside bar strategy.
@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)
CuriousChartist
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@Thataghata, Color doesn't really have much significance. If it breaks the high temporary bullish, if it breaks the low then temporary bearish. But ideally if you are bullish then look for the green mother candle.
Arthvardhan
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you are a legend
CuriousChartist
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@Arthvardhan, Nope not at all. I'm damn bad with intraday.
Arthvardhan
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@CautiousChartist, me too. intraday not matching my personality.
bhanuramu
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Price action for swing trades well explained.
Priya_Kanmani
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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?
Arthvardhan
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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.