Gold Prices Slide into Swing Support.

Trend-Line Support as New Resistance. Short Term Strategies, Scalping, Price Action Analysis, and Risk Management. Every trader should have a variety of strategies available to apply to the markets.

Having multiple strategies may seem like a complication at first, but having choices can allow traders to react quickly and be able to trade a variety of market conditions. Today we will start a new strategy series by reviewing how to trade inside bars. Inside bars are easily identified pricing patterns that can be found on virtually any chart.

The pattern itself requires some simple technical analysis, which includes identifying a series of highs and lows on a daily chart. Below we can see an example of an Inside Bar developing on a USDCAD Daily chart. Our analysis begins by pinpointing the previous bars high and low.

Currently the high for the previous daily candle resides at 1.

Trade Inside Bars with OCO Orders

If price remains inside both values, our inside bar will be confirmed! So now that you have identified an inside bar, the next question is when and how to trade them. First off, trading inside bars lends itself to trading breakouts. The idea is that the identified highs and lows mentioned above, will also act as support and resistance values.

If price breaks above resistance, traders will look to buy the market. Conversely if price falls below support, traders will look to sell. One way to setup for a n inside bar breakout is through the use of an OCO order.

An OCO order allows us to set a buy and sell entry order at the same time. Using an OCO entry is beneficial to traders , as it allows them to be ready for a breakout in ei ther direction.

Regardless of the markets direction, an entry will be pending execution! In the event that price breaks out, the OCO order will execute the appropriate entry order while canceling the other from your pending orders list. Once entry values have been determined, traders can then plan on how to exit their positions. As the final step, setting stops and managing risk is one of the most important components of any working strategy.

Trade News Breakouts with OCO Orders

When it comes to trading inside bars, this process can be simplified by setting your stop between your OCO orders. This means if your buy entry and sell entry are spaced pips apart, as per our USDCAD example, you would set your risk at Profit targets can also be formed in the same fashion.

Traders opting to use a 1: This means using the example above, a pip profit target would be set. To contact Walker, email instructor dailyfx. Follow me on Twitter at WEnglandFX. DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

Market News Headlines getFormatDate 'Wed Jun 21 Technical Analysis Headlines getFormatDate 'Wed Jun 21 Trend-Line Support as New Resistance getFormatDate 'Wed Jun 21 Education Beginner Intermediate Advanced Expert Free Trading Guides. Click here to dismiss. Get Your Free Trading Guides With your broad range of free expert guides, you'll explore: News getFormatDate 'Wed Jun 21 News getFormatDate 'Tue Jun 20 Short Term Strategies, Scalping, Price Action Analysis, and Risk Management Connect via: Inside Bars precede market breakouts OCOs can be used for Entries Use the risk management tool to determine risk percentages Every trader should have a variety of strategies available to apply to the markets.

What is an Inside bar? Playing the Dollar Momentum Slow-Down getFormatDate 'Wed Nov 12 Upcoming Events Economic Event. Forex Economic Calendar A: NEWS Articles Real Time News Daily Briefings Forecasts DailyFX Authors.

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