An inside bar forms when the entire trading range of a day is contained within the range of the previous day. This pattern reflects contraction, balance, and reduced volatility—often preceding a directional move once price exits the range.
Standard Subreport
What does this measure?
This report tracks how often inside bars occur on the selected timeframe. An inside bar is identified when both the high and the low of the current day fall within the high and low of the prior day.
The report focuses purely on frequency and occurrence, helping you understand how common or rare inside bars are under your selected filters.
Based on your data, inside bars occur 15.79% of the time.
How can I use this?
Use this report to identify periods of consolidation and compression:
Inside bars signal reduced volatility and indecision.
When an inside bar forms, price is often setting up for a move beyond the prior day’s range.
If inside bars are statistically uncommon in your dataset and one appears, that can increase the significance of the setup.
If inside bars are unlikely, you may instead favor trades targeting the prior day’s high or low directly.
Inside bars represent pauses in directional movement. They show that neither buyers nor sellers were able to expand the range beyond the previous day, often indicating energy building beneath the surface. Recognizing when the market is compressing allows you to prepare for expansion rather than reacting late.
Example
Previous day high: $105
Previous day low: $95
Current day high: $103
Current day low: $97
Because the entire current day range is contained within the prior day’s range, this day qualifies as an inside bar.
Weekday Subreport
What does this measure?
This report measures how frequently inside bars occur on the daily timeframe, segmented by day of week. It allows you to see whether inside bars cluster on specific weekdays or occur more randomly.
Based on your data, inside bars occur 37.5% of the time for the selected weekday filter.
How can I use this?
Use weekday tendencies to refine expectations:
If inside bars occur more frequently on certain weekdays, you can anticipate consolidation more often on those days.
If they occur less frequently, the appearance of an inside bar may be more meaningful.
This helps you decide whether to expect range compression or directional expansion during the session.
Market behavior can shift depending on the day of the week due to positioning, liquidity, and scheduled events. Viewing inside bars through a weekday lens adds context, allowing you to judge whether today’s inside bar is routine or statistically unusual.
Example
Yesterday (Tuesday) high: $210
Yesterday low: $200
Today (Wednesday) high: $208
Today low: $202
Because today’s range remains inside Tuesday’s range, Wednesday prints an inside bar.
Break Subreport
What does this measure?
This report examines what happens after price opens within the prior day’s range. Every day that opens between yesterday’s high and low has the potential to form an inside bar, and this report tracks which side of the range price ultimately breaks.
It measures:
Breaks above yesterday’s high
Breaks below yesterday’s low
Whether both sides are touched or only one
How can I use this?
Use this report to define targets and avoid low-probability trades:
If yesterday’s high is frequently touched, it becomes a logical upside target.
If yesterday’s low is frequently touched, it becomes a logical downside target.
If touching both sides is rare, once one side breaks, you can avoid trades that assume price will also reach the opposite side.
This helps you focus on the most likely expansion path once price leaves consolidation.
When price opens inside the prior day’s range, the market is starting from a position of balance. The eventual break provides information about which side gains control. Knowing the historical odds of each outcome helps you avoid overtrading and improves target selection.
Example
Yesterday’s high: $150
Yesterday’s low: $140
Today opens at $145
If price later trades up to $150 but never reaches $140, the breakout is classified as an upside break relative to the prior day’s range.
Trading the Inside Days Strategy
Across all three reports, the inside bar framework helps you answer three key questions:
How often does compression occur? (Standard)
When does compression tend to appear? (Weekday)
Which direction does price typically resolve once balance breaks? (Break)
By combining these views, you can identify when the market is quiet, determine whether that quiet is typical or unusual, and plan for expansion with realistic expectations—rather than reacting after the move is already underway.