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Nikita (SEBI RA)

27th Oct · SEBI-Registered Analyst

Inside Candle Breakout – Silent Power Move ⚡

📊 An Inside Candle (or Inside Bar) occurs when the entire candle range stays within the previous candle’s high & low. It indicates price compression and potential breakout. ✅ Formation: Small candle completely inside prior candle. Volume usually contracts → traders waiting for breakout. Breakout above/below inside candle triggers big move. ✅ Meaning: Short-term consolidation before expansion. 📌 Example: Stock forms large candle (₹640–₹700), next day trades within ₹650–₹690 → Inside Candle. Break above ₹700 → bullish breakout; below ₹640 → bearish continuation. 🧠 Tip: Combine with trend direction — Inside Candle works best with the major trend, not against it.

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