Double Inside Bar is a Client Side VTL indicator. Double
inside bar is a price action candles stick pattern where two inside bars form
immediately. An inside bar is a bar whose high is less than the high of the
previous bar and low is greater than the low of previous bar. The Double Inside
bar pattern is two inside bars forming immediately.
Pattern detection rules are:
Price Bar 1 is an inside Bar.
Price Bar 2 is an inside Bar with price bars 3
and 4. (Bar 2 is inside the High low range of Bar 3 and Bar 4.)
See the chart with bar numbers. Note that second inside bar
of the double inside bar pattern (bar number 2) is an inside bar with its
preceding two bar high/low (bars 3 and 4).
Double Inside bar pattern is marked in chart by the yellow up arrow. This
pattern indicates consolidation and lack of volatility. Trading action is
confined to a range during the formation of the last two bars in the
pattern. The range is marked by the High
and Low of Bar 2. After consolidation, breakout from this trading range will
eventually occur. The Double inside bar pattern trading strategy uses this
market behavior to open trades in the direction of breakout.
the double inside bar pattern is really straight forward. Anticipating a
breakout either up or down, place two pending stop orders few pips above the
high/low of the FIRST inside bar’s mother bar, that is bar 2. See the chart
attached. Once an order is triggered, the other order work as stop loss for the
trade. Trailing stop loss can be applied to lock in the profits. The double
inside bar pattern gives better results on higher timeframe charts.