The picture below shows how Inside Bar Breakout Indicator works on Metatrader platform. It’s very helpful with any breakout strategy.
How to Trade Breakouts
Once the Inside Bar pattern is formed, we place an OCO (One-Cancels-Other) order:
- BUY if the next candle close above the high (blue line)
- SELL if the next candle close below the low (red line)
- STOP ORDER at the middle line (light blue)*
*Be aware that there is always a possibility for a reversal to happen, generating a false breakout, that’s why we need to place a stop order.
- File: InsideBarBreakout.mq4
- Size: 3 Kb