As you can see the formation of the inside bar setup is a powerful signal to enter the market. The inside bar formation means that the market is consolidating. The breakout of the pattern means that the market decided to continue in the same direction. What you must do to make money is to follow the market direction.
Your entry is going to be the breakout point, and your stop loss is going to be placed under the tail of the mother candle, which is the larger candle before the inside bar, and the profit target is the next level. Easy, right?
The second concept that characterizes the Forex Traders Bible is trading with confluence, which means that you will learn how to find confluent factors that support your trading decisions. This will help you take only high-probability setups in the market and ignore low-quality ones.
Look at the chart below to understand how we make trades based on confluence: