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.
We can see an Inside Bar on D1 chart on the popular “cable”. The mother candle was set on Friday ,17 Feb.
The probability of braking thru the top is high, which further supports the fact that for last 9 days GBPUSD moves in descending channel, which often (statistically) is broken at its end by bullish stroke. Setup will become interesting after successful defeating the upper line of the downward channel (blue lines) and its retest as seen below on chart H4. I bet on Buy.
The closest target is 1.2520 but for longer term we can count on 1.2680.
However, if the blue line is not defeated and the price will head south setup will be invalid.
PS: place any comments under the article ,good to know if you find it helpful so your feedback is welcome.
Dargo, 00:05 ,22/02/17