The document discusses the inside bar pattern in forex trading. It describes the inside bar pattern as a mother candle containing one or more baby candles that do not exceed the highs or lows of the mother. It then outlines a three step method: 1) identify the trend using a moving average, 2) look for an inside bar breakout in the direction of the trend and enter with a pending order, and 3) set stop losses and profit targets using a risk:reward ratio, typically 1:2. The overall strategy follows the trend direction and uses inside bar breakouts with appropriate risk management.

1. Forex Control
INSIDE BAR
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2. INTRODUCTION:
What is the inside bar pattern?
Basically, it is pattern which consists of Mother candle and baby candles.
The baby candle highs must not be higher than the mother candle and lows
must not be lower than the mother’s candle. The baby candle can be one or
many.
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3. The uses of inside bar pattern:
•The pattern indicates a indecision of the market
•If the mother’s candle highs or lows break, then a significant movement of the price
may occur.
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4. THE METHOD:
 Step 1: Identify Trend
 Open your chart, set a moving averages indicator to
exponential, and set it to 21.
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5. THE METHOD:
 The process to determine the trend is easy.
 For buy/bullish trend: The EMA 21 must be
below the price.
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6. THE METHOD:
For bearish/sell trend: The EMA 21
must be above the price.
Once finished the first step, proceed to the
second step
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7. THE METHOD:
 Step 2: Inside Bar Breakout
 The reason for identifying the trend is to filter the
bad trade.
For example, if the inside bar breakout is up (the baby candle break the mother’s candle
high), then trade only if the trend is bullish/up.
If the trend is bearish/sell, ignore the inside bar breakout signal (due to against the trend).
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8. THE METHOD:
 For buy/bullish trade:
•Trend is bullish/buying trend
•The baby candle must break the mother’s candle highs.
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9. THE METHOD:
 Tip: You can set pending order buy above the
mother’s candle high instead of waiting it to break
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10. THE METHOD:
 For sell/bearish trade:
•Trend is bearish/selling trend
•The baby candle must break the mother’s candle lows
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11. THE METHOD:
 Tip: You can set pending order sell below the
mother’s candle lows instead of waiting it to break
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12. THE METHOD:
 Stop loss and Profit Target
 For buy: Set the stop loss below the previous baby candle lows. Profit target: use the
risk: reward tactic. If the risk: reward is 1:2, then multiply the stop loss range pip by two.
In this example scenario, the stop loss is
40 pip. Since I want to use the risk:
reward of 1:2, then my profit target is 80
pip
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13. THE METHOD:
 For sell: Set the stop loss above the previous baby candle highs. Profit target: use the
risk: reward tactic. If you choose risk: reward is 1:2, then multiply the stop loss range pip
by two
Risk Reward:
1:2, 40 pip x 2= 80 pip profit target.
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14. THE METHOD:
 THE METHOD IN A NUTSHELL:
 So, here is a basic outline of what you'll be doing with
this method:
 Identify trend by using moving average indicator
 Inside Bar breakout – must follow the trend direction.
Use a pending order instead of waiting the breakout. Set
stop loss and profit target. Use the risk: reward system.
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15. THE METHOD:
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16. Forex Control
INSIDE BAR
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