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Part 1 · Understand the pattern

02The valid inside bar

One strict rule, two checks, no exceptions.

A valid inside bar.
  1. 1Mother bar: high 1.1230, low 1.1150.
  2. 2Inside bar: high 1.1215 is below 1.1230 and low 1.1175 is above 1.1150.
  3. 3Inside range = 40 pips.
Hypothetical illustration, not real market data.

Mother bar high 1.1230, low 1.1150. Inside bar high 1.1215, low 1.1175.

Strict rule. Inside high < mother high AND inside low > mother low. Both must pass; equal highs or lows are excluded.

Range = (1.1215 − 1.1175) / 0.0001 = 40 pips. One on EUR/USD = 0.0001.

Tool · Inside-bar checker

Is it a valid inside bar?

Valid · Valid: the whole range sits strictly inside the mother bar. · Candidate range 40 pips
Honest note
The pattern describes a contraction. It does not prove a powerful move will follow.
Key takeaway

Both checks pass, or the candle is not an inside bar.

Try it
Enter a candidate high of 1.1230 in the checker and read the reason it gives.