Forex Trading EUR USD March 12

This is done in the daily charts. I saw bar A which is a nice inside bar. But the bars next to to Bar A is a trading range. So I wait for a bullish bar to enter.

Bar B is a doji which means bears and bulls are almost equal. But have a potential as a signal to indicate a bullish trend. So I try and wait if the next bar is bull to enter the trade. It proved to be a bull and closed just above the inside bar’s range. So I entered long depicted in the arrow.

As of now, its +63 pips.

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  • Mark

    hi forexphil, if candle A is an inside bar, shouldn’t it be inside its previous candle? or did you take into consideration the 2 previous candles of A as the mother candle?

  • ForexPhil

    Candle A is actually the mother candle and the next bars are its children. And they are the inside bars. See that when the child breaks out of the mother’s range, it went and continue to trend up.

  • mark

    Okay, so you only look at the body and disregard the wicks of the candle? How about the wicks of the child candles, would’t you consider it as an attempted breakout if it pierces the range and came back?

  • ForexPhil

    Not entirely. The wicks are good indicator for confirming your first assessment of the trend. If it makes consistent false breakouts then there should be a move favoring the other side.