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.
The pair NZDUSD after yesterdays decision of Reserve Bank of New Zealand to leave interest rates (OCR) unchanged broke the lower level of the Inside Bar and continues to fall. On 6th of Feb we wrote about this pair and formation of IB here. Now we can see a evident breakout thru the top which can be treated as a false breakout. In such case I’m bearish and will wait for retest of the broken lower level of IB and go Short.