The Inside Bar pattern is a candlestick pattern that indicates a period of consolidation or indecision in the market, which could precede a breakout or a trend reversal. It is often seen as a pattern of potential continuation or reversal, depending on its location within the broader trend.
Key Characteristics of the Inside Bar Pattern:
Two Candles:
The first candle is usually a larger candle, known as the "mother bar," which represents a range of price movement (high to low).
The second candle is an inside candle (often smaller), which is completely contained within the range of the mother bar. The high of the inside bar is lower than the high of the mother bar, and the low of the inside bar is higher than the low of the mother bar.
I am attaching chart so that you can understand the inside bar pattern