Inside bar setups work the best when there is momentum, and momentum comes from news, fundamental events, chart patterns, short squeezing, and many other ways.
The 2 inside 4hr bars for AUD/USD implied great risk-reward ratio! 1st one only 25pips risk and gave an 150 pips move; 2nd one only 10 pips risk and gave an 90 pips move! The larger the time frame, the higher the winning percentage for inside bar trades. While frankly speaking, it's slightly higher than 50% winning percentage only (yes, like toss coins), but the point is it provides a great risk-reward ratio and able to make money even with 50% winning percentage. that's the whole story about inside bar setup.
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