Inside Bar Breakout Scanner

• Mother Bar (Yesterday): The reference price range representing expansion or trend direction.
• Inside Bar (Today): Range (High and Low) is completely nested inside yesterday's High and Low. Represents market compression.
• Trigger: High probability entry occurs on a breakout above the Mother Bar High (Bullish breakout) or below the Mother Bar Low (Bearish breakout).

Understanding the Inside Bar Price Action Scanner

An Inside Bar is a classic two-candle price action pattern indicating a temporary pause or consolidation in the market, often preceding a strong breakout. By scanning Nifty 500 stocks in real-time, this tool identifies equities undergoing volatility contraction where a major trending move is building up.

The Inside Bar Strategy Anatomy:

• The Mother Bar (Bar 1): The preceding candle with a relatively large range (High to Low).
• The Inside Bar (Bar 2): The current candle, whose high and low are completely encompassed (engulfed) within the high and low of the Mother Bar.
• Volatility Contraction: Indicates that buying and selling pressures are reaching an equilibrium. A break beyond the Mother Bar range triggers a directional entry.

How to Trade Inside Bar Breakouts:

Traders place a BULLISH breakout entry buy-stop order just above the high of the Mother Bar, or a BEARISH breakdown entry sell-stop order just below the low of the Mother Bar. To increase the win-rate, it is recommended to filter trade signals in the direction of the intermediate trend (e.g., only buying if the breakout occurs above the 50 EMA, or shorting below it).