Simple Inside Bar Forex Trading Strategy

An “inside bar” price setup is a 2-bar price action trading strategy in which the second candlestick forms within the high to low of the previous bar.

This setup can be translated into a viable and winning trading system, this is what we have just done.

Our approach is a minimalistic one that simplifies our ability to spot bullish/bearish trends more accurately.

Chart Setup

MetaTrader4 Indicators: iTrend.ex4 (Input Variable modified; Bands_Period=28), insidebar.ex4 (default setting), indicatorarrows.ex4 (default setting)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day

Recommended Trading Sessions: Any

Currency Pairs: Any pair

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Download the Simple Inside Bar Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy entry if the following indicator or chart pattern gets displayed:

  1. Zoom out of the chart and visually locate possible resistance (red horizontal line) and support (blue horizontal line). If an inside bar (gold bar of the insidebar indicator) is spotted around a possible support area, with price breaking above the high of the inside bar price formation, it is an indication of a buy signal.
  2. If the lime green upward pointing arrow of the indicatorarrows.ex4 custom indicator forms below the candlesticks as seen on Fig. 1.0, it is a trigger to go long on the currency of focus.
  3. If the blue vertical strokes of the iTrend.ex4 custom indicator forms above the 0.00 level, price is said to be pushed to the upside i.e. a buy signal.

Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following holds true:

  1. If the fire brick downward pointing arrow of the indicatorarrows.ex4 custom indicator is spotted above the candlesticks, an exit or take profit is recommended.
  2. If a red vertical stroke of the iTrend.ex4 custom indicator pops out during a bullish trend, it is an indication of a possible reversal, hence an exit or take profit is advised.

Sell Entry Rules

Enter a sell order if the following rules or conditions takes precedence:

  1. Zoom out of the chart and visually locate possible resistance (red horizontal line) and support (blue horizontal line). If an inside bar (gold bar of the insidebar indicator) is spotted around a possible resistance area, with price breaking below the low of the inside bar price formation, it is trigger to go short.
  2. If the fire brick downward pointing arrow of the indicatorarrows.ex4 custom indicator forms above the candlesticks as seen on Fig. 1.1, it is a trigger to go short on the currency of interest.
  3. If the red vertical strokes of the iTrend.ex4 custom indicator form above the 0.00 level, price is said to be driving lower i.e. a sell signal.

Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following holds true:

  1. If the lime green upward pointing arrow of the indicatorarrows.ex4 custom indicator is spotted below the candlesticks during a buy signal, an exit or take profit is recommended.
  2. If a blue vertical stroke of the iTrend.ex4 custom indicator pops out during a bearish trend, it is an indication of a possible reversal, hence an exit or take profit is advised.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The Indicatorarrows.ex4 deploys colored arrows that are positioned below or above the candlesticks to define market trends. It is an easy to use custom indicator.

The insidebar custom indicator is a technical indicator that pinpoints pin bar candlesticks, thereby taking the stress of scanning through the activity to spot for these candlestick patterns off the trader.

The iTrend.ex4 custom indicator is a modified Bollinger Bands indicator that can also be used to determine varying volatility in the market.

Download The Bollinger Band Bounce Trading Strategy For FREE!

Combines Price Action And Market Volatility To Help You Identify Profitable Entries And Exits Quickly and Accurately.



  • Up To 100 Pips Per Trade With Low Risk
  • Includes Entry, Stop-Loss And Take Profit Rules
  • Learn And Trade This Strategy In only 10 Minutes