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General TradingI

Inside Bar

A candlestick pattern where the entire range (high to low) of a bar is contained within the range of the previous bar. It signals consolidation and often precedes a breakout in either direction.

Example

For example, if Monday's candle has a high of $100 and a low of $90, and Tuesday's candle has a high of $98 and a low of $92, Tuesday is an inside bar signaling consolidation.