The Inside Bar Candlestick Pattern And Market Volatility

The Inside Bar candlestick pattern is a two-bar structure that arises when a candlestick's trading range is entirely within the trading range of the previous candle. A giant candle is followed by a smaller candle that is entirely contained within the larger candle's light cone. Indicators of a possible trend reversal, this pattern is sometimes seen by traders as a hint of market consolidation.