Insidebar Swing Trading

There are a several high probability scenarios in which insidebars (IBs) offer fantastic swing entries. And while it is crucial to pick the right wave when swing trading, the way IBs close is the main giveaway as to where it is headed next. Take note of the following properties before exploring different scenarios;

A long and biased wick in a particular direction on the mother candle and insidebar, signals a desire for price to flow in that particular direction.

A bullish close with a high wick followed by another candle with similar characteristics sparks momentum for a breakout and continuation of a bullish move. Same is true for a bearish close with a long wick to the downside.

An IB is either the result of a tight range and slow moving market or the calm before the storm and a major move on the charts. The latter is less common.

Scenario 1

2017-01-21_ib01

All IBs have been marked and to the untrained eye it’s a 50/50 chance of getting it right or wrong.

2017-01-21_ib02

These particular IBs are of highest interest not only because they have lot’s of potential(plenty of room to move) but because both candle wicks pointing to the same direction.

Room to move is key for IB setups to fully flex, especially if sentiment is mixed or not in favour. The following scenarios below take lead from the same concept above.

Swing low

2017-01-23_ib3

Price was ranging at swing low and building momentum. The swing lower was clean and and smooth in price action terms. At the bottom price produced IBs with decisive wicks pointing up. Eventually the range gave way and broke to the top.

Swing low

2017-01-23_ib4

Price was very indecisive leading down to the swing low. Several IBs with decisive wicks pointing higher. With plenty of spaced to move into, produced a clean-cut signal.

Swing high

2017-01-23_ib5

Price started to range at swing high. IBs on the top of the range signaled a move lower.With enough clearance to the left of the chart price made a run for the lows.

Swing high

2017-01-23_ib6

Price got caught up in a range in the form of a double top at swing high. Several candles including IBs had wicks pointing down the way. Once floor got swept price slid lower.

Miad Kasravi

If you’d like to understand market better and trade with the flow while you are full time employed contact me on twitter @ZFXtrading I offer support, or visit my YouTube channel Speculators Trading for Tutorials 

Miad

View posts by Miad
Currency&Commodity Trader

6 Comments

  1. Andy
    January 23, 2017

    Your IB is then most to be an IB it Includes the whole wick and body not just body

    Reply
  2. […] The following is a guest post by Miad Kasravi and was originally posted here at miadkasravi.wordpress.com. […]

    Reply
  3. thomas
    February 07, 2017

    which timeframe would you recommend, where to stop and target?

    Reply
    1. Miad Kasravi
      Miad
      February 07, 2017

      4h is most balanced but all TFs yield results. Target based on fibo levels or market environment and stops behind IB or mother bar

      Reply
  4. Ashley
    February 20, 2017

    Miad, great blog! Does the IB strategy mainly apply to Forex or can I use this strategy to trade equity in the mid-large cap range?

    Reply
    1. Miad Kasravi
      Miad
      February 20, 2017

      Thanks. I found IBs in large caps are no brainers especially 4h.

      Reply

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