Inside Bar Indicator
Inside bar indicator for MT4 scans the chart automatically and plots the Bullish and Bearish forex candlestick pattern.
The inside bar indicator for MT4 automatically scans the chart for the classic inside bar candlestick chart pattern and plots it in the current chart. So, forex traders can trade the pattern using the indicator. The inside bar trading strategy is profitable as the stop loss is very small compared to other trading strategies. Moreover, forex traders can trade the inside bar pattern in bullish and bearish market conditions. But traders should use price action to confirm the pattern and buy or sell accordingly.
The indicator works well in all intraday time frames and the daily, weekly, and monthly price chart. New and advanced forex traders alike can use the indicator profitably. However, new traders must understand price action to confirm the pattern breakout and trade accordingly. On the other hand, advanced traders incorporate this pattern in complex trading strategies. Furthermore, forex traders can use the indicator for automated trading strategies.
Inside Bar Indicator For MT4 Trading Signals
The above GBPUSD H1 price chart shows the inside bar indicator for MT4 in action. The indicator plots the high of the inside bar pattern in Green and the low with a Red line.
The inside bar pattern consists of 2 candlesticks. In this candlestick pattern, the second candle is engulfed by the previous candle which is also known as the mother candle. Forex traders should note that this pattern may occur as a reversal or continuation pattern. But, trading as a continuation pattern during a trend may produce higher results than trading reversals.
If the pattern occurs during an uptrend, the indicator plots the high and low of the pattern on the chart. If the next candle breaks to the high of the pattern, it indicates a Bullish price trend. So, forex traders should enter the market with a BUY position with a stop loss below the low of the pattern. However, the pattern does not provide a take profit projection. So. traders should book profits with a good risk to reward ratio.
Similarly, if the pattern occurs during a downtrend, the indicator plots the high and low of the pattern. If the next candle breaks the low of the pattern, it indicates a Bearish market trend. So, traders should place a SELL trade with a stop loss above the pattern’s high. Traders should exit the position with a good risk-reward ratio.
The direction of the breakout is important in identifying the trend direction. So, traders should use price action to confirm the breakout direction for profitable results.
Conclusion
The inside bar indicator for MT4 is in fact a candlestick pattern scanner. However, traders can trade the pattern in both bullish and bearish markets only after confirming with price action. So, new forex traders must familiarize themselves with price action. Additionally, traders can download the indicator for free and install it easily.
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