Mastering the Inside Bar Breakout Strategy for Consistent Profits
Welcome back, traders. Today, I want to take a deeper dive into a trading method that can truly improve your market performance and simplify your daily routine. We will be discussing the Inside Bar breakout technique.
This strategy is fundamentally very easy to understand and execute, yet it provides a fairly high probability of success. You do not need to complicate your charts with too many technical tools to see real results.
If you are looking for short term setups, this method is exceptionally powerful. For those focused on scalping, achieving a quick 1000 point profit is very possible and highly realistic using this exact strategy. You simply wait for the market momentum to break the high or low of the mother candle and ride the wave.
How to Execute the Trade
Executing this strategy is straightforward and removes emotional guesswork. Here is the step by step process on how to enter and manage your trades.
Entry Placement You do not need to watch the chart all day waiting for a breakout. The best way to enter is by using pending orders. Simply place a Buy Stop order exactly at the High of the Mother Candle, which we call the C1 zone. At the same time, place a Sell Stop order at the Low of the Mother Candle. Whichever side the market breaks first will trigger your active trade.
Stop Loss Placement Risk management is built right into the setup. Your Stop Loss is placed on the exact opposite side of the Mother Candle zone. If your Buy Stop is triggered at the High, your Stop Loss goes at the Low of the Mother Candle. If your Sell Stop is triggered, your Stop Loss goes at the High. This keeps your risk perfectly calculated based on the current market volatility.
Take Profit Targets You have complete flexibility depending on your trading style. You can easily aim for a Risk to Reward ratio of RR 1:1 or RR 1:2 based on the total size of the Mother Candle. Alternatively, you can use a fixed Take Profit by Point, such as aiming for a quick 1000 or 2000 points.
Make Backtesting Easy
To build your confidence and master this method, backtesting is an absolute must. Finding these setups manually and calculating the Risk to Reward for every single trade can be exhausting.
If you want to make your backtesting process much easier and significantly faster, you can use my custom indicator designed specifically for this setup. The indicator will automatically scan the chart, draw the exact Mother Candle zones, and even plot the Take Profit lines for RR 1:1, RR 1:2, and your custom Point targets directly on your screen.
Get the indicator and start testing it today to see the high probability setups for yourself using the links below.
For MT5 users: https://www.mql5.com/en/market/product/175254
For MT4 users: https://www.mql5.com/en/market/product/175257
