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.


GBPJPY is moving from October 2016 in a consolidation, which took the form of an ascending triangle. Since June 12, there has been a strong bullish movement after reflection from the triangle lower limitation.

GBPJPY Daily

Price has already approached to the upper limit of formation and moves in a Inside Bar created by the Monday day candle. If IB will be broken thru the top in accordance with trend, then we can expect the price to reach the upper limit of the triangle (red line) giving us opportunity to earn 100p on BUY order. Successful breaking the triangle may be a signal for further growth, even up to 153.30 in long run.

GBPJPY Daily and Inside Bar

However, if the breakout from Inside Bar is down, declines may stop on the closest support – 145.40 and only after it has been beaten may the downtrend continue to the next support level around 143.80.

Leave us a comment!

Ransquawk
SHARE
Previous articleDollar Pressured Ahead of ADP NFP Report
Next articleGuten Morgen DAX 07.07.2017
Since 2010, he has been actively involved in the Forex market up to now. He is a supporter of Price Action and using as few indicators as possible. He believes that the simplicity of the system and consistency in its application is the best way to success in financial markets, and lack of patience is the most frequent cause of failure. Interested in classical systems based on Technical Analysis and in psychology - mechanisms that guide human behavior and conditioning decision making in trading.