Inside Bar Pattern

This pattern looks like a mirror of an Engulfing Bar Pattern. The preceding candle is engulfing the second candle. It is also a reversal pattern that can indicate the change in trend especially when this pattern is located at tops or bottoms. On a strong trending market, this can indicate a continuation pattern.

To use it as a continuation pattern, identify first the trend of the market using indicators such as DMI(Directional Movement Index) before buying or selling.

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