How to Spot an Inside Bar Breakout
60sVisually demonstrates a simple yet powerful price action pattern that traders can immediately apply.
▶ Play Clip"Delivers exactly what the title promises: a 1-minute inside bar breakout strategy for Pocket Option, with clear examples and rules."
This video teaches the inside bar breakout strategy on one-minute charts for binary options trading. The presenter explains how to identify mother and inside candles, mark breakout levels, and enter trades with strict risk management rules.
Use 1-minute candles and 1-minute expiry for accurate entries.
A large bearish candle is the mother bar; the next bullish candle formed completely inside its high and low is the inside bar.
When a candle closes above the mother bar's high, place a buy trade at the opening of the next candle. Ensure the market is trending.
Risk only 1-2% per trade, stop after two consecutive losses, and take only 3-4 quality setups per session.
The presenter offers a downloadable PDF checklist from Telegram to help traders follow the rules.
Three inside candles formed after a mother candle; the fourth candle broke above the mother high with strong momentum, triggering a buy.
There should be a maximum of three inside candles; more indicate sideways movement and false breakouts.
A breakout candle with long wicks shows rejection; avoid such setups as they may fail.
An early entry before proper confirmation can lead to loss; waiting for the correct breakout gives winning trades.
Use 1-minute candles, 1-2 minute expiry, risk 1-2%, stop after 2 losses, and practice on demo first.
The inside bar breakout strategy is simple and rule-based; discipline and proper timing are crucial for consistent profits. Practice on demo and use the risk management rules to protect your capital.
What is a mother bar?
A large candle whose high and low define the breakout levels for the inside bar strategy.
00:59
What is an inside bar?
A candle that forms completely within the high and low of the previous mother bar.
00:59
What is the maximum number of inside bars to wait for?
Maximum of three inside bars; more indicate sideways movement.
03:18
When do you enter a buy trade?
When a candle closes above the mother bar's high, buy at the opening of the next candle.
01:13
When do you enter a sell trade?
When a candle closes below the mother bar's low, sell at the opening of the next candle.
03:03
What is the recommended risk per trade?
1-2% of your account balance.
01:39
How many consecutive losses should trigger a stop?
Two consecutive losses.
01:39
Why should you avoid breakout candles with long wicks?
They show rejection and often lead to failed breakouts.
03:47
What expiry time is recommended for this strategy?
One minute expiry, or two minutes.
06:06
Breakout Confirmation
Highlights the exact entry trigger: close above mother bar high for buy.
01:13Maximum Inside Bars
Limiting inside bars to three reduces false breakouts and improves strategy reliability.
03:18Learning from Losses
Emphasizes that losses are normal and part of the learning process, reinforcing discipline.
04:42Timing is Critical
Early entry without confirmation can turn a winning setup into a loser.
05:35[00:02] In today's video, I'll show you one of the most powerful yet simple price action patterns, the inside bar breakout strategy. This strategy works on real market charts, and it's perfect even if you're completely new to trading. I'll
[00:16] explain how to spot an inside bar, how to mark breakout levels, and exactly when to enter a trade step by step with live chart examples. Disclaimer. This video is for educational andformational purposes only. Trading involves high
[00:32] financial risk and can result in the loss of your capital. Always test any strategy on a demo account first and only trade with money you can afford to lose. I am not providing any financial or investment advice. So, make sure you
[00:46] watch this video till the end. Follow the rules carefully and practice on demo before going live. Let's get started. Now let's move to the live chart and see how to use this strategy step by step. I'm using one minute candles and taking
[00:59] trades with one minute expiry. This is very important to keep your entries accurate. Look here, this big bearish candle is our mother bar. The next bullish candle formed completely inside the high and low of the mother bar. This
[01:13] is the inside bar. I'm drawing horizontal lines at the mother bars high and low. These are our breakout levels. Now watch closely. As soon as a candle closes above the mother bars high, it confirms a bullish breakout. Right at
[01:26] the opening of the next candle, I place a buy trade with one minute expiry. Make sure the market is trending. Avoid flat or sideways charts to reduce false breakouts. Also, follow strict risk management every time you trade. Risk
[01:39] only 1 to 2% of your account balance per trade. Stop immediately after two consecutive losses. Trade only three to four quality setups per session. This keeps your account safe and helps build long-term consistency. And because I
[01:53] rules at first, I've made it super easy for you. I've created a free bonus PDF checklist just for this video. You can download it right now from my Telegram description. This way, you don't have to keep pausing the video or taking notes.
[02:09] Just grab the PDF and keep it open while you trade. Now that you know the full rules, in the next part I'll show you the live chart examples so you can start practicing this strategy. Look here, this large red bearish candle is our
[02:22] mother candle. I've drawn horizontal lines at the high and low of this mother candle. After this, you can see three small bullish candles formed completely inside the high low of the mother candle. These are our inside candles.
[02:35] And now watch this fourth candle. It's breaking out above the mother candle's high with strong bullish momentum. As soon as it closed above the mother candle's high, I immediately placed a buy trade at the opening of the next
[02:48] candle with one minute expiry. This is the perfect inside bar breakout setup. Big mother candle up to three inside candles. Breakout candle closing beyond the mother candle. Important rule. When a bearish mother candle forms, wait for
[03:03] a bullish inside candle to break above its high. Buy trade. When a bullish mother candle forms, wait for a bearish inside candle to break below its low. Sell trade. And always remember, there should be a maximum of three inside
[03:18] candles. More than three usually means the market is going sideways and that increases false breakouts. And as you can see, this buy trade is now closing in profit. Now that this trade has closed successfully, let's stay patient
[03:33] and wait for the next perfect inside bar pattern to form before entering our next trade. Here I've taken a buy trade, but notice something important. This breakout candle is very big and has long wicks on both top and bottom, which
[03:47] shows strong rejection from both sides. Ideally, in the inside bar breakout strategy, we want a clean medium-sized breakout candle without large wicks. I've taken this trade only as an example for learning to show what can happen
[04:01] when the breakout candle is not clean. Now, as this trade is running, notice how price is starting to slow down and even showing some pullback movement. This happens often when the breakout candle is too large or shows rejection.
[04:15] It means the market might not have enough strength to continue. This is why we should always wait for normal size breakout candles and avoid entering when the candle is too big. And as you can see, this buy trade has closed in loss.
[04:29] This is a perfect example of why risk management is so important and why we should avoid setups with oversized breakout candles. It's completely normal to have losing trades. What matters is learning from them and sticking to your
[04:42] rules. Losses are part of trading, but with discipline and practice, you can stay consistent. Here, I've taken a buy trade, but notice something important. This first entry was taken at the wrong place. Once I realized this, I placed
[04:55] two more buy trades at the correct breakout level where the price broke above the mother candle's high. So in total, I now have three buy trades total, I now have three buy trades running. One early entry and two correct
[05:07] entries. As the trade continues, you can see the market is now moving in the bullish direction, breaking above the marked resistance level. The two trades moving into profit, while the first early trade is still recovering. This is
[05:22] a good reminder that timing is very important in the inside bar breakout strategy. Even a small early entry can become a losing trade if it's taken before proper confirmation. Here are the results. The first buy trade closed in
[05:35] loss because it was taken at the wrong place. While the next two buy trades entered at the right breakout level, exactly as per the strategy rules. And that's how the inside bar breakout strategy works. simple, rule-based, and
[05:50] powerful when used with discipline. We saw how entering early can lead to losses and how waiting for the correct breakout gives clean winning trades. Always remember, use one minute candles and 1 minute or 2 minute expiry. Risk
[06:06] only 1 to 2% per trade. Stop after two consecutive losses. And always practice on demo first before going live. I've also created a free bonus PDF checklist
[06:18] just for this video. You can download it right now from my Telegram channel. The link is in the video description. This checklist will help you quickly follow all the strategy rules while trading without pausing or taking notes. If you
[06:31] found this video helpful, hit the like button, subscribe to SAM Trading Strategies, and turn on the bell icon so you don't miss any of my upcoming strategies. Also, comment below which part of this strategy helped you the
[06:44] most. I'd love to hear your feedback. Thanks for watching and as always, trade smart, stay consistent, and I'll see you in the next video.
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