Inside Bar

Discussion in 'Technical Analysis' started by toc, Jun 9, 2005.

  1. toc

    toc

    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!
     
  2. Brandonf

    Brandonf ET Sponsor

    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
     
  3. Lucrum

    Lucrum

    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.
     
  4. toc

    toc

    "If you combine it with something like an NR7"

    What is NR7........
     
  5. rjl

    rjl

    NR7=Narrowest range in the last 7 trading sessions.