Glossary / Price action

Outside bar

An educational concept. Not a signal, not a strategy, and not a trade Josh has taken.

A flowing ice-blue glass ribbon rising and dipping through empty space, an unlabeled picture of price in motion.
Illustration of the idea, not a market chart and not a result.

A candle whose high is above and low is below the previous candle's range. It shows expansion and a contested period.

How traders use it: Where it closes matters most: a close near the high after taking the prior low is read differently from a close in the middle.

Common mistake: Treating every outside bar as an engulfing reversal regardless of where it closed.

Related: Inside bar · Bullish engulfing · Close significance

See this term in the full glossary · All terms

Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.