Inside Bar Breakout
BullishContinuationBeginnerA candle inside the one before it: the market pauses, then picks a side.
Verdict: SkipBitcoin 4H: 408 trades, won 53%, avg trade +0.2% vs random day +0.2%. Backtest
Price is climbing. The trend is up.
step 1/7
Trade rules
| Direction | Long (buy) |
|---|---|
| Entry | In an uptrend: a candle whose high and low both stay inside the previous (mother) candle. Then a candle CLOSES above the mother bar's high within 3 candles. |
| Cancelled if | Price trades below the mother bar's low before that close. |
| Target | 2x the mother bar, projected from the breakout |
3 common mistakes
- Using a tiny mother bar: a range smaller than a normal candle means nothing.
- Buying a breakout against the trend: this setup only buys in an uptrend.
- Entering on a wick above the high instead of waiting for the close.
Backtest
same rules every time · equal size · no fees · method| Market | Trades | Won | Avg trade | Random day |
|---|---|---|---|---|
| Bitcoin · 4H · 2017-2026 | 408 | 53% | +0.19% | +0.20% |
| US large caps (50) · 1D · 2016-2026 | 2476 | 51% | +0.24% | +0.60% |
Verdict: SkipIt made money, but less than buying on a random day.
pattern +76%random +82%
pattern +606%random +1492%