Whales Have an Alphabet The New York Times

What this Indicator Does This indicator is a very simple tool created specifically for experienced Straters. It was created for those Straters who fully understand the Strat Scenarios, are in need of an easy to use tool, and do not want or need a lot of messy markings on their chart. The indicator simply allows the user to color code the Strat 1, 2 ,3… Ever since the discovery of whale songs almost 60 years ago, scientists have been trying to decipher the lyrics. On Thursday, the Justice Department sued the concert giant Live Nation Entertainment, which owns Ticketmaster, for violating federal antitrust laws and sought to break up the $23 billion conglomerate.

Inside Bar: Entry

Inside Bars represent a period of consolidation within a market. Traders often interpret this as a sign of indecision where neither buyers nor sellers could gain the upper hand. A subsequent breakout from an inside bar formation may indicate the market’s commitment to a new direction, following the path of least resistance. Typically, a trader might look at the volume during the formation of an inside bar to gauge the potential strength of the upcoming breakthrough. The emergence of an Inside Bar often signals a period of market consolidation, suggesting a possible shift or reversal of the current trend.

Indicators, Strategies and Libraries

As for stop loss, an order could be placed at the lowest price level of the mother candle or at the lowest level of the previous price swing (as shown in the chart). Finally, take profit is placed at the highest level of the last swing price. So, a good solution is to apply an indicator or a tool that works well with the inside bar. For that matter, you can use support and resistance levels, a Fibonacci retracement tool, MACD, RSI, and MAs. There are limitations to almost every indicator, and those specific to the InSide Bar Strategy would be choosing to trade the breakout of the indicator. We caution traders here because with low probability trades like this example, the market does not have a smooth range and it could prove more trouble than it is worth.

How to Trade the Inside and Outside Bars

They usually use 2-3 moving averages and when they are in order from shortest to longest period, that call that a valid trend. An Inside Bar (or candle) is a 2-bar pattern where a bar is inside the total price action of the previous bar. In other words, the Inside Bar has a higher low and lower high than the previous bar. When this happens the previous bar is known as the mother bar. It does not matter if the Inside Bar is bullish or bearish, all that matters is where the Inside Bar prints relative to existing price action.

How to identify an inside bar on forex charts

That is, the strategy is the foundation with the inside bar seen as more of a prompt. Once the mother bar forms, setting the range for our inside bar, watch for the close of your inside bar to form. This confirms https://www.trading-market.org/ the consolidation phase has elapsed and there is a relative pause in price action. The key levels to recognize for the bullish candle pattern are the high of the inside bar and the high of the mother bar.

Don’t make this common mistake when trading the Inside Bar…

Note how the price continues to trade higher after the appearance of the inside bar pattern and the confirmation of the third candlestick’s formation. The first candle has a tall body, sometimes very large wicks, and is called the mother bar. The second candle has a small body, sometimes having low wicks, and is called the baby candle. The inside bar formation is completed when the second candle closes within the body of the mother candle. As mentioned above, the inside bar is a two-candlestick pattern that may appear in any market scenario. Identifying the inside bar is not rocket science, and once you have a basic understanding of what it looks like, you will be able to locate it instantly on price charts.

Relevance to Market Trends

That may sound obvious, but many traders are so eager to enter a trade, that they don’t spend a few extra seconds examining the strength of the trend. Price action is also in a range and there is no obvious trend or support/resistance level. You might have been lucky if your took a long trade, but over time, you’ll lose more of these trades than you win. This is part of a new series we are calling “Strategy Myth-Busting” where we take open public manual trading strategies and automate them.

Traders often interpret the Inside Bar formation as a moment of decision, signaling either a continuation or a reversal of the prevailing trend. When the prices break above or below the mother bar, it can trigger entry points for trades. However, traders typically apply the Inside Bar Indicator in conjunction with other technical analysis tools to improve the accuracy of their predictions and to form a more robust trading plan. The formation of the bearish break pattern follows the same process as the bullish breakout strategy. The major difference between the two setups is that we are looking for weakness.

1. This will be explained further below in our What to look for section.
2. The key to trading inside bars is to wait for a breakout in either direction before entering a trade.
3. Finally, take profit is placed at the highest level of the last swing price.
4. Not all breakouts are this strong, but this is a good example of a scenario when a range lead to a big breakout.

But it really kind of doubles as a lesson in humility for us humans when it comes to appreciating the idea that there are lots of non-human ways in which language can exist. But, you know, other species have evolved in other directions. And so you have to put yourself in the place of a sperm whale.

The ‘Inside Bar’ is characterized by a bar or candle that is entirely ‘inside’ the range of the preceding one, whereas the ‘Outside Bar’ completely ‘overshadows’ or ‘engulfs’ the previous bar. When combined with other technical analysis tools, the Inside Bar strategy becomes an even more potent component of a trader’s arsenal, allowing for refined entries and exits. However, it is the trading psychology discipline that truly unlocks the strategy’s effectiveness. The ability to maintain patience, to wait for high-probability setups, and to manage emotions is what distinguishes successful traders in the long run. An inside bar is much easier to take in a trending market because the odds are already in your favor for trading with the trend.

For a long signal, the stop loss would go below the mother bar. Not all breakouts are this strong, but this is a good example of a scenario when a range lead to a big breakout. You don’t need to know why Inside inside bar indicator Bars happen, you just have to understand what the price action is telling you. The only thing that you have to take into account when identifying an Inside Bar is the high and the low of the previous bar.

The other type of Inside Bar trading signal is the countertrend Inside Bar. This type of Inside Bar appears at support and resistance levels. Some traders like to use multiple moving averages to define a trend.

But I think in order for that breakthrough to make sense, I think we’re going to have to start with what we have known up until now about how whales interact. The first step is finding out what the trend of the market is. This will help you avoid bad trades and only make trades in the direction of the trend. The Inside Bar indicator offers clear criteria for entry and exit points, facilitating effective stop loss and take profit decisions to manage risks strategically.

And one of them is that the whales really are using full-blown language. The baby candle (new price trend) must break the mother’s candle highs (old price trend). An in-depth study of the SP500 index during August 2023 reveals an inside bar pattern after a period of high volatility. The pattern is formed at 4400 and suggests a short-term consolidation before the index continues its previous upward trajectory. An inside bar pattern occurs on a price chart when a bar is completely contained within the range of the previous bar. In technical terms, this means the high of the inside bar is lower than the high of the prior bar and the low is higher than the low of the previous bar.

If the currency pair prices diverge from the existing trend before the price consolidates, a reverse price breakout is confirmed. The Inside Bar pattern works best when the market is currently trending. The stronger the trend, the easier it is for the pattern to provide a reliable signal.

If that happens, then maybe, indeed, sperm whales have something like language as we understand it. So a sperm whale might be communicating to the whale right next to it a few yards away, but it might be communicating with whales miles away, hundreds of miles away. They’re in the dark a lot of the time, so they don’t even see the whales right next to them. So it’s just this constant sound that they’re making because they’re in this dark water. The scientists on this project are really careful to say that these results do not definitively prove what these sperm whale sounds are. There are a handful of possibilities here in terms of what this study could mean.