To become successful in trading the Forex market, a good knowledge of chart patterns is useful. Today we will examine the inside bar and what it can mean.

An inside bar is easy to identify, it is simply a bar where:
- The high is lower than the previous bars high.
- The low is higher than the previous bars low.

An inside bar can indicate the following:
- Consolidation – The market is taking a breather before moving on in the direction indicated by the previous bar.
- Indecision – The market does not make new highs or lows because it is unsure of the direction it wants to go.

Studies have found the following results following inside bars:
- Very little movement in the market for the following two days if the previous bar is not a strong bar.
- If the inside bar follows a strong UP or DOWN bar there can be significant statistical results can often be found for the following 2 – 3 days.