Which are the inside candles in the candlestick chart?
A) Mother candle green and inside candle red (or vice versa) and the high_low of the inside candle are inside the body of mother candle.
B) Mother candle green and inside candle red (or vice versa) and the high_low of the inside candle are inside the high_low (or can be the body) of mother candle.
C) The high_low of the inside candle are inside the high_low of the mother candle. (Mother candle & inside candle can be of any color (2 green/2red)
D) The high_low of the inside candle are inside the high_low (or can be the body) of the mother candle. (Mother candle & inside candle can be of any color (2 green/2red)
I know A is the perfect inside candle but can any other (or all) also be considered a good inside candle?
Look… We should need to understand the psychology behind the formation of an inside candle…
Inside candle generally shows that the market is halting usually after a good move up/down with leads to the formation of an small candle with less volume called inside candle…
Inside candle mainly form because of little proof booking in a trending market…
And because of an indecision at resistance /support…
Breakout of the high or low of the mother candle can be traded… Probability will be if the breakout happens in the direction of the trend…
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