Optimizing Inside Bar in Binary Options Trading

In chart analysis techniques, we recognize the term inside bar. Is that inside the bar?

"Inside the bar is when the creation of a candle with the body is in the previous candle or called the mother candle. When an inside bar pattern is formed, this is a good moment to take a trading position, "

But the newbie was asked to be more careful, because there were often errors in the use of the inside bar pattern.

Fundamental error

The inside bar can show a reversal signal (reversal), or trend continuation (continuing trend). Ideally the inside bar pattern is used for daily trading, if the duration is less than that it is very risky.

This is what causes most newbie traders to suffer losses due to a rush with a short duration. So that impressed just guessing. Even though according to Wahyu, this pattern can be relied upon to make a profit if the time prediction is right.

Also keep in mind that in market conditions sideways inside bar patterns are difficult to use. It's best to avoid it if you don't want to lose profit.

Momentum Utilizing Inside Bar

An inside bar is best used as a trend continuation pattern. In the daily chart view, this trend can be considered as a game ‘breakout‘. This momentum must be utilized because it can provide a very good potential profit to jump above the current trend market, continue its movement after a short pause or consolidation.

"Most newbies have not been able to take advantage of this signal. And indeed reading this pattern is quite difficult for beginners, but by continuing to practice and the more frequent finding this pattern, the trader will be more sensitive,

Determining the duration of time will be more flexible when market conditions are trending, either bearish or bullish. However, keep avoiding very short durations below the daily.

"Our advantage is to use long time, among which we can immediately sell to the market before the duration of time ends if there is a trend change. This is an anticipatory measure to minimize the risk of loss because a good signal when entering a position does not mean that we will be guaranteed 100 percent of profit, often the market acts outside of our analysis, "he added.

The candlestick pattern inside the bar is often found at the end of a trend. For this reason, trading inside the bar is often used as a reversal signal or reversal. This candlestick inside the bar indicates market doubt.

Read to Practical Ways to Distinguish Market Trends and Sideways
Read to Four Methods of Investment Mandatory Grip of Traders

"To be able to help analyze the signal inside the bar, we can use the bolinger band indicator, or the 20-period Simple Moving Average as an alternative. Can also be used both at once on one chart

Take advantage of the strong signal inside the bar to gain profit and avoid mistakes that will cause the strong signal to be in vain.