What is the sign that an inside bar shows to the trader. Is it bullish, bearish or what else. Is it a good reversal sign or predicts a sideways undecided markets? Cheers!
It just shows a general reduction of volatility. If you combine it with something like an NR7 then you might be looking for a larger move to come out as volatility is mean reverting. Brandon
I read somewhere that an inside bar generally means market indecision. After an extended move it's not uncommon to see a reversal after an inside bar.