The Inside Bar’s Deception

Dr. Sterling, Head of Quantum Algorithmic Trading, prided himself on objectivity. He spotted a pristine inside bar on the $MEGA-CAP chart—a tight coil of indecision. “A volatility contraction,” he dictated, “imminent expansion!”

The next bar broke the high, signaling a bullish surge. Dr. Sterling initiated a heavy long position, smugly adjusting his tie. “Textbook execution,” he murmured.

Then, the Hikkake struck. The subsequent bar plunged below the inside bar’s low, trapping the breakout buyers. Dr. Sterling’s screen flashed red. “The market,” he sighed, removing his glasses, “is clearly employing psychological warfare.” He realized his ‘imminent expansion’ was just a very expensive wink.