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But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk. You can manage you subscriptions by following the link in the footer of each email you will receive. 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. Our analysis begins by pinpointing the previous bars high and low. Currently the high for the previous daily candle resides at 1.
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. The trade panel will allow you to place a set of pending orders, and also allow you to flag them into OCO groups — if you want to.
When this trigger is detected, the panel will search through your open orders, find the left over pending orders that belong to the group, and clear them out. We covered this entry strategy in the forex entry strategies section of this tutorial. Just to re-cap, this is an duel entry approach into a reversal signal, where we target a retracement entry point, and at the same time set a breakout order as a combo.
When the panel is waiting for a trigger event, you will find the tickets in the trade monitor. In fact, you can set as many pending orders as you like, across as many pairs as you like — when one of those get triggered, the rest in the group get canceled.
This is one of the wow factors of the trade panel. Now, what I want to do now is create another OCO bracket for limit orders, okay? This is a limit order with the same stop loss and the same target. For instance, if you want to move your stops a little higher you can do so by moving them just below this low, and your targets just right here above these highs. This will give you a customizable OCO entry, once the price hits your limit order, okay?
Now you can do this for as many as financial instruments you want and you can do this with one or two targets if you are trading more than one contract on any futures market.
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