Charting & Price Action
Intermediate
Inside Bar
Also called: IB, harami
A candle whose entire range (high to low) sits inside the previous candle's range — signals consolidation before a breakout.
Definition
An inside bar is a volatility contraction. After a strong move, the inside bar marks a pause. Traders enter on a break of the parent (mother) candle’s high or low.
Example
Daily EUR/USD prints a wide range up-candle, then a small inside bar the next day. Buy stop above the parent candle's high — breakout entry.