Mother
Bar Breakout pattern is a follow up of the inside bar pattern and can be very profitable when traded as «False - breakout», also known as «the fakey».
Not exact matches
To take advantage of
breakouts in a runaway trend, my favorite plays are inside
bar patterns and my proprietary fakey trading signal.
Below, you can see some examples of recent inside
bar breakouts and a multi-
bar fakey
pattern that led to a trend continuation and provided savvy price action traders a low - risk and very high reward potential trade entry...
The wedge
pattern had an upside
breakout followed by a pullback that ended bullishly with that outside reversal
bar.
In the example below we see a nice fakey pin
bar combo
pattern with two inside
bars before the pin
bar false -
breakout, this is totally OK and is something you'll probably see often in fakey setups:
So, if for example, an inside
bar setup false - breaks to the upside, forming a «bearish» fakey
pattern, the implication is that price may continue moving lower, opposite to the direction of the initial
breakout.
To take advantage of
breakouts in a runaway trend, my favorite plays are inside
bar patterns and my proprietary fakey trading signal.
Below, you can see some examples of recent inside
bar breakouts and a multi-
bar fakey
pattern that led to a trend continuation and provided savvy price action traders a low - risk and very high reward potential trade entry...
The last trade I discuss in this video was a false
breakout of an inside
bar / mother
bar pattern.
An inside
bar is best traded as a trend - continuation
pattern on the daily chart, they can be thought of as «
breakout» plays and can provide very good risk reward potential to jump aboard a trending market as it resumes its movement after a brief pause or consolidation.
If you see a
pattern of consecutive inside
bars that are «coiling» and all within the previous
bar's range, this can signal that a powerful
breakout might be coming, more on this later.
Even in the absence of a pull back in prices, there are often clues that the market is likely to continue and
breakout with the trend (such as inside
bar pattern trend
breakout).
The benefits of this method are that the straightforward
pattern often predicts price
bars will increase in significant
breakouts and breakdowns.
The candlestick chart above illustrates price
breakout close to the opening of the forex trading session shown by the white circle to the left in addition to a bullish rejection
bar that created an unconnected
pattern that didn't present an opportunity for a stop - and - pop trading opportunity represented by the circle in the right.
Premium
patterns, Pin
Bar, Key Engulfing Reversal, Fakeys, Inside
Bar, Double High Lower Close, Mother
Bar Breakout and many more..
The double inside
bar pattern breakout offers good trading opportunities (low risk / high reward).
The False -
breakout pattern is an inside
bar pattern followed by a relatively brief price move that encourages and trap (Hikkake means «to trap» in Japanese) unsuspecting small retail traders to adopt a false assumption regarding the likely future direction of price.
The fakey price action consists of three or more candlestick price
patterns, starting off with the inside
bar pattern following by a false
breakout.