Inside Bar: The Market’s Nap Time (or Secret Planning Session)

Ever see a price bar on your chart that looks like it just shrunk and decided to hide completely inside the previous one? That, my friends, is an Inside Bar!

It’s basically the market saying, “Woah there, Nelly! I need a breather.” Or maybe, “Shhh, I’m plotting something, but don’t tell anyone!” The price isn’t making any big new moves; it’s just consolidating, taking a little nap, or perhaps having a very secretive meeting within the confines of the previous day’s action.

Think of it as the market holding its breath, building up tension. It’s a moment of indecision, a pregnant pause, right before it either bursts out with renewed vigor or decides to collapse in exhaustion. So, when you spot an Inside Bar, grab your popcorn – something’s probably about to pop!