Learn How Bearish Inside Bar works in the financial market: How to trade bearish chart pattern Inside bar

Bearish Inside bar – In candlestick chart patterns, many chart patterns exist. If we trade one by one on all of them then we don’t have time to trade. If you follow one bearish chart pattern, the name is Bearish Inside Bar. That chart pattern is found on top of the market and it works to reverse the market.

By the way, we can’t predict the market movement but we can expect after the formation of a bearish chart pattern market can move upside or downside. In my trading journey, I have seen many chart patterns that are not working well and don’t give sufficient movement according to chart pattern theory.

If you know a little bit about how to catch a proper chart pattern and what is the exact place of formation of a chart pattern then you can drive chart patterns even if they belong form the bearish or bullish category. In this post, we are going to learn about how the bearish chart pattern of the Inside bar plays its role, how the market reacts after the formation of a bearish inside bar, and how the inside bar works in the forex market.

Usually Bearish inside bars perform on top of the market. It doesn’t matter if it performs in the forex market, stock market, and crypto market. All we mean is the candlestick, whether it is green or red. Because it belongs to the candlestick chart pattern. And we know very well candlesticks perform everywhere, with the help of candles we can predict the market movement for the initial time.

how to trade bearish inside bar chart pattern

How Bearish Inside Bar performs and works in the market

In this modern trading era, there are many sources are avible to trade. But if we follow our traditional matched candlestick chart pattern every indicator and oscillator depends on our ever-green traditional method.

Bearish chart patterns inside the bar usually perform on top of the market. It can be performed at swing high or new fresh high or even resistance. If its perform on those levels then we have golden level to trade, because after then there are higher change market will return from there.

Now time to talk about how the bearish chart pattern inside bar formed. Bearish inside bar three to four candlestick combination chart pattern. It has huge bullish candle who give a close nearst its high after bullish candle it has a small red candle must be performed who covers around 25% of bullish candle.

After formation of red candle next candle must be open around red candle shadow and give close below parior red candle. After those one more red candle must be performed who break the low of bullish candle. Its complete formation of bearish inside bar

Now it’s time to know how bearish inside bar works. If bearish inside bar has performed on the top of the market.And we know as well as its totally the opposite of a bullish inside bar

How to get in or Get out on behalf of the inside bar chart pattern

There are many ways to take entry or exit on the bearish inside bar chart pattern It depends on you, how you treat entry or exit. According to my view, We should take entry on bearish inside bar chart patterns low. Doing trade on inside bar is not hard but its recognition is hard so you must be do practice on it.

How to take entry =- If you are looking for how you can take entry on it then you must read that blog briefly. Because in this blog I have explained every thing related to inside bar. So come come to the point, Taking entry on it is bit hard because it is five to six candlestick combination chart pattern.

Frist of all when ever you spot Bearish chart pattern inside bar then you must check where its formed and what is size of mother and baby candle. After checking all things you should wait for breakdown low of mother candle. But you must keep in your mind, while market breaking its low then you must be check there is no opposite colour candle after baby red candle.

how to trade inside bar chart pattern

When its low has close to breaking you should active and continue to watch chart. Afer breaking the low of mother candle and there are no any opposite colour candle and pattern formed on the top of the market. Then you put your sell order on it and wait for your target.

Where book our profit on inside bar =- now point to know where to book our profit. If you are confused how to exit or book our profit then you must check your patience level. In the market, there are only one thing is important that is patience, You know very well if you have luck of patience then market will not reward you.

Booking profit on bearish inside bar is little bit confusing. Because we have to consider on our risk to reward ratio. If in this pattern bullish candle is too much huge then our risk reward ratio is go in too much higher. So now it’s very confused point to book profit.

Let me tell you one thing you must check your patience how much you can loose in one trade. According to my advise trader must take one each two, if you are not following this risk to reward ratio then your result will come out in loss. If you placed your entry on inside bar low at 1000 and it high is 1120 then your target will be 740. That is good risk reward ratio.

Some time market will not give you one each two then you be keep ready on one each one or less then one each one risk reward ratio. Because in the market some time market performed a very huge bearish candle so that’s why trader have big stop loss and small target. Trader must be ignore this type of trade.

What is stop loss on it =- doing trade without stop loss is inviting to huge loss or emotions, rule breaking, mindset destroying, and taking too much trade for average your position.

You must put your stop loss on its high. For example Bearish inside bar has 1200rs high then you should put your stop loss with little bit buffing like 1220 or higher but less then 50 points. Why buffirng is important that question may be raised in your mind. Some time market go to close your stop loss and hit that and come back to your entry or your target. So that’s why you must place your stop loss with buffering.

how to place your stop loss

Without stop-loss trading is hard to survive in the market. In the market without stop loss, you incur huge loss because the market love to eat traders’ capital those are trading without stop loss.

The important thing to consider while trading Inside Bar

Here I’m considering important things that are most useful in the market. With the help of this, you may become a successful trader in some time. The inside bar is the most popular and reliable chart pattern in the candlestick family. It performs regular basis. If you looking for some important and useful highlights then you must check that section.

  • It’s a bearish reversal chart pattern.
  • Its also called a bearish inside bar chart pattern.
  • It’ll perform top of the market.
  • It also performs on pull-back and swing high.
  • It has three to five candlestick combinations.
  • After the formation of that chart pattern, the market can move significantly in opposite directions.
  • It has a bullish and small bearish candle indicating a mother has taken her baby in her lap.
  • Bearish inside has not any opposite candle until it has not broken mother low candle.
  • Trader must keep their stop loss on its mother candle high.
  • the trader must book their profit in one each of two risk-reward ratios.

There are most useful thing while trade the bearish inside bar. If you thing there are need to change some thing please contact us we will set according to you. Thanks for reading that post may be it will useful and valuable for your time.

Leave a Comment