Outside Bar

is not a flashy pattern

is a signal that the price is starting to expand

What is an Outside Bar?

This current K

has a higher high and a lower low

completely engulfs the previous K

regardless of red or green

only look at "whether it completely engulfs"

What is the Outside Bar saying?

The market is starting to increase volatility

it is not a consolidation

it is preparing to choose a direction

How to view it in a lower time frame?

You will see

that each pullback and push

is getting larger

prices are "opening up space"

Three practical uses

1. Find entry timing

After an Outside Bar

only do pullbacks

not chase breakouts

2. Set stop loss

Place stop loss

outside the high/low of the Outside Bar

if hit = pattern invalidated

3. Basis for holding

The Outside Bar creates an expanding structure

indicating there is still space

only then is it worth holding

Key takeaway in one sentence

The Outside Bar is not telling you to enter

it is telling you

that the market is getting serious

Will you make a profit?

It depends on whether you

wait for it to come back

and follow the process

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