Forex glossary
Inside Bar
An inside bar has its high and low contained within the preceding mother bar's range. Rules may allow equal boundaries or require strict containment. It describes a smaller bar range, without establishing breakout direction or a strategy's tested advantage.
Illustrative example
How does it work in practice?
Assume the EUR/USD mother bar ranges from 1.1000 to 1.1050. The next candle spans 1.1010 to 1.1040, so its entire range is inside the previous one regardless of its body's direction.
A case to work through
One equal boundary
A hypothetical mother bar has L=10 and H=15; the next bar has L=11 and H=15.
- Allowing equality puts both extremes within the mother's range.
- A strict H<15 condition fails.
What follows? Choose one version and apply it consistently.
Example boundary: Range containment does not determine a future breakout direction.
A useful distinction
Inside Bar / Harami
Inside bar checks high–low; harami checks a small second body within the first.
Check your understanding
Apply strict and non-strict containment rules.
Show the answer and explanation
Yes; both boundaries are inside
Low 21 is above 20 and High 29 is below 30. The entire second bar fits inside the mother bar.
Bodies, shadows and context
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Read the fuller explanation
Related terms
Sources and documentation
- TradingView – Inside Bar strategy
An implementer's high/low containment rule, distinct from body-only containment.
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