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Guest post by Jason Madison, independent trader and founder of

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

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