Trading Inside Bars –under this heading you will find analysis made on basis of one of the most known Price Action formation – Inside Bar. Statistics show that best results gives breakout from Inside Bar formation on Daily chart, so mainly this time frame charts will be analysed.
On EURAUD pair we have a clear consolidation that took a form of Inside Bar for a couple of days since the quotes are included in the candle from May 18th (mother candle). For the first time this range was defeated on Friday, May 26, but daily candle closed again in the “mother” candle range.
In case this Friday’s hight was a false breakout, we can expect that if IB will be broken thru the bottom, price can drop at least to first resistance at 1.4880. But before such a breakout can happen, there is a uptrend line (blue line), which broken will strengthen the downside scenario.
However, if the price breaks up again from IB, possible is growth to upper edge of bearish channel visible on the weekly chart.