Patterns
Inside Bar Pattern
Learn what an inside bar is, how it forms, and how traders practice reading it in context instead of treating it as a signal by itself.
Updated 2026-05-14
An inside bar is a candle whose range sits inside the range of the previous candle. The previous candle is often called the mother bar.
In simple terms, the current candle has a lower high and a higher low than the candle before it.
What an inside bar shows
An inside bar shows compression. Price moved within a smaller range than the previous candle.
That compression can happen before continuation, reversal, or more sideways movement. The pattern itself is not a complete trading plan.
How to identify it
Compare the inside bar with the previous candle:
- The inside bar high should be below the mother bar high.
- The inside bar low should be above the mother bar low.
- The full range of the inside bar should fit inside the previous candle range.
Inside bar checklist
- Find the mother bar first.
- Compare high to high and low to low.
- Check the pattern in the surrounding trend or range.
- Notice whether the pattern forms near support or resistance.
- Avoid treating the pattern as a buy or sell signal by itself.
Context matters
An inside bar after a strong trend can show a pause. An inside bar near support or resistance can show compression before a decision. An inside bar in the middle of a messy range may be less useful.
The skill is not just spotting the pattern. The skill is reading where it appears.
Practice goal
Practice finding inside bars without rushing into a trade idea. First identify the mother bar, then confirm whether the next candle is fully inside its range.
After that, ask what the broader chart is doing.