A candle whose high and low are both within the previous candle's high and low (the "mother bar"). It shows a pause or contraction.
How traders use it: Traders mark the mother bar's high and low and wait for a break of one side, often in the direction of the higher-timeframe trend.
Common mistake: Trading inside bars in the middle of a choppy range, where breaks often reverse.
Related: Outside bar · Compression (consolidation) · Bullish harami
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Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.