YM - Inside bar formation potential bullish setup

17 mag 2018

An inside bar has formed on the Dow Jones after a strong up move over the past week. This price consolidation represents the market take a breather (taking profits) and a break of the high of the inside bar pattern generally triggers the next up move. A break of the high of the pattern (24,800) will validate the pattern and trigger a potential long setup. A stop loss just below the low of the inside bar is generally used (24,629). If price breaks below the inside bar and holds then the pattern will be invalidated.