Forex Trading Technique – Inside Candle Breakout

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Guest post by Jason Madison, independent trader and founder of beatwallstreetnow.com

Take Your Forex Trading To New Heights With This Amazing Technique. It’s Called An Inside Candle Breakout. An inside candle occurs when the body of a candle is contained entirely within the price action of the previous candle.

forex strategy

The third candle from the left is the candle that is containing the four candles following it. The arrow pointing to the fifth candle shows where a breakout occurred as price was able to close outside of the containing candle. A long trade entered here would have been very profitable. Notice also the pink lines at the highs and low of certain candles. Also, notice how whenever a candle closes outside of one of these lines price continues to move in that direction.

So, the rule for trading inside candle breakouts is to open a trade in the direction of the break. If the breakout is at the low you sell, if it’s at the high you buy it’s that simple

Now Lets Look At Some Charts To See How Well This Pattern Works. Here is a chart of the Eur/Usd

Forex Strategy

The yellow lines represent the highs and lows of the containing candle and the yellow arrows show where the breakouts occurred. The first breakout gave a small gain but look at the second and how the market moved down hard, and then how it moved back up after the third. Imagine all that cash being deposited straight into your account.

The best part about this technique is that it works on all timeframes and doesn’t require you to wait on any lagging indicators. It’s based on pure price action.

So take this technique and use it to master the markets and start your journey towards financial independence.

If you would like to learn about more patterns like these and how you can discover how you can learn the secrets to trading for a living then visit BeatWallStreetNow.com

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

7 Comments

  1. Colin Bennett on

    Good observation and prooving of the technique
    Haven’t yet tried it myself – will do so shortly.

    How is it that some of the most effective methods can just manage to hide themselves?

  2. Very interesting technique indeed. I love to trade breakouts of any kind. Thanks for sharing this!

  3. Pingback: Inside Candle Breakout Technique for Profit on EUR/USD | Forex Crunch

  4. BENJAMIN PETERSON NWANKWO on

    I’m a new person to the FX, but I think your article is interesting. can’t you it be downloaded via the internet (I mean having the soft copy in PDF format)?
    being new to the market, such materials are needed to help those of us who are new to it.

  5. Pingback: EUR/JPY Alert | Forex Crunch

  6. Wise men simplify things

    Fools complicate them

    Jason Madison`s candle techniques are simply brilliant