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Introduction-

If you are a naked K trader, you must be impressed by the needle-stick trading.

Needle stick is mainly used for false breakthrough inversion signal.

The inner strip means that the market is in a state of indecision.

Internal leverage can provide clues about the possible direction of the next market.

Internal rod is a very useful "tool" in price trend trading.

Eating it thoroughly will definitely help you succeed in your long-term transaction.

What's in the bar?

The form of the inner bar consists of the front bus bar (bus bar) and the back inner bar (pregnancy line).

The internal bar form sometimes has a mother bar and multiple internal bars.

The standard internal strip template is as follows:

Characterized in that:

The inner bar is almost completely hidden in the front bus bar.

Its highest and lowest prices will not exceed the highest and lowest prices of the bus bar.

Of course, the actual market can't always appear in this standard form, it will have some changes.

Four changes of standard internal bar

1. Double/Multiple Internal Bar

Double inner bar is a female bar followed by two inner bars, which is very common. Sometimes you can even see three, four or even more inner bars being followed. This model means that the current market indecision will continue.

Coil inside the bar

A rolled inner strip means that two or more inner strips are continuously rolled behind a mother strip, and the latter inner strip is always in the front range. Many times, this means that the market may be brewing a major change.

The coiled inner bar shape usually points to a major price breakthrough, because the market accumulates energy when coiling, leading to a strong breakthrough:

3. False form-false breakthrough in the bar line

This means that after an inner strip shape, the price has a false breakthrough, and it quickly reverses after changing in one direction, leaving some people trapped.

4. Internal Bar&Pin Rod Connection Form

As we said before, the needle bar is one of the most suitable price forms for trading. If the needle bar is also an internal bar form, it is what we call a joint form, which can more clearly point to the next market changes, usually an important price trend signal.

Next, Matthew and his partners talked about the combined trading strategy of Inside bar and pin bar;

//The inner column is usually called the trend continuation signal. It should be noted that

To make the market sustainable, there must be room for operation.

In other words, a bullish inner column cannot appear in a nearby area with resistance.

Just as a short bar line cannot appear in a supported area nearby.

If this is the case, then the market is likely to reverse rather than move on.

This brings us into the needle bar strategy, and the inner bar can be regarded as a failed breakthrough.

Usually, when you break through the failure, the market will develop in the opposite direction.

For example, a breakthrough failure at a key resistance level usually leads to a stable decline shortly thereafter.

The figure above shows how all three parts of the combined mode work at the same time.

The first is the key level, followed by the internal column, and then the sales column.

Internal leverage represents the deadlock between buyers and sellers. The subsequent bullish pin represents a failed breakthrough to the internal pin and the key support level. This positive rise maintains support, which is the credibility of the reverse form.

Attention:? Because of the key support level below, the short internal bar in the above picture will not be considered as a tradable signal.

Three characteristics of effective combination mode

Like any strategy in our trading, certain characteristics are needed to determine whether the signal is valid or not. Combination mode is no exception. In order to make this model a reliable transaction, the following three conditions must be met. These are practical supplements and of course necessary.

Time range

First of all, the form must be formed in the daily time range. This is because the inner bar is only valid within this time range. Anything below the daily time range may cause the wrong signal, so it should not be traded.

key level

The whole premise of this model depends on the key support level or resistance level. This is why the model is effective. I strongly recommend that you only trade when the key horizontal line or trend line acts as a turning point in the market. This will also help you to judge whether the transaction is improper.

Pay attention to the ending

The next typical pin bar method of trading with us is a little different. The difference here is that the closure of the pin rod must be included in the inner rod. The only exception is that if you get a "strong" closure, the pin bar will be attached to the bar in a more favorable combination. The figure below illustrates this point in more detail.

The figure above shows two valid combinations and one invalid combination.

Please note that the opening and closing of the pin lever in the first picture is included in the inner lever. This represents an effective combination, which is also the most common combination of the three.

The second picture shows that the needle bar is closed above the inside bar. Due to the strong closing of bulls, this is still an effective model. In fact, it is so powerful that the result is a bullish engulfing model.

The third picture shows that the needle bar is closed under the inner bar. This is considered a weak closing because it shows that bulls do not fully support the rise. When you see this situation at ordinary times, you'd better stay away.

Important: The easiest way to avoid the adverse effects of invalid combinations is to trade only obvious signals. If it takes a long time to study the market to determine whether the signal is satisfactory, it may not be worth adopting.

Admission strategy and stop loss position

The entry and stop loss positions of the combination mode are exactly the same as those of the needle bar strategy.

Admission strategy:

Option 1: Use the 50% retreat strategy, so that you can enter the site at the 50% K-line retreat position.

This is my first choice, because it provides me with a more favorable risk return rate.

Option 2: The second bad option is to enter the arena above the physical product bar. This way will reduce your risk-return ratio.

Stop loss position: Like the traditional needle bar strategy, the stop loss should be placed above or below the tail of the needle bar. If the market reaches the region, the model will be destroyed and the transaction will no longer be valid.

For more information about how to stop losses, please read my other articles.

How to trade in a bar?

There are two main ways of insider trading: one is as a signal of market continuation, and the other is as a signal of market reversal.

I prefer to use them as a continuation signal of the trend market, which is easier to trade. However, the inner horizontal line of key support level and resistance level is also a very strong reversal signal.

1, as a continuation signal of the market, the internal leverage is in a trend market, so the market is already in a favorable state for you. Internal leverage will lead to a breakthrough or many times to continue the current trend of the market, there are many good opportunities for additional investment to help you make a fortune.

Tip: the internal leverage is prone to false breakthrough at the key price of the trend market.

2. The inner column is used as a market reversal signal.

Sometimes the internal lever is a reverse signal, indicating that the price hesitates at a certain price and then starts to pull back in the other direction. The following figure is an example of an inverted signal. Pay attention to the internal leverage formed by key prices, which means that the market is hesitant to continue to rise. When the price fell below the lowest price of the inner bar, the market began to form a strong downward trend.

Anyone who is familiar with my trading methods knows that I am a loyal supporter of inside bar and pin bar. If used correctly, both signals are very reliable and profitable. I'm Matthew, a naked k trader. If you like my article, don't forget to like it!

Solemnly declare: this article is only for discussion and exchange, and does not constitute any investment advice!