*** Forex system - Think Outside The Bars Strategy

Think Outside The Bars Trading System

Now that we know what an outside bar is lets focus on how to use it in our favor. We will keep a lookout for these patterns at or around pivot levels because pivot point levels act as great support and resistance.

- In a uptrend when we see a Red Outside Bar at or around a pivot level, enter Short

- In a downtrend when we see a Green Outside Bar at or around a pivot level, enter Long

- Keep your stops at the highs or lows of the outside bars.

Note : Always wait for the outside bar to close to confirm it is an outside bar. Do not enter a trade if the outside bar is still forming.

Long Trade Example

Think Outside The Bars Strategy

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Understanding Outside Bars / Engulfing Candles

Outside bars or engulfing candles are known to indicate trend reversals. This price action pattern is typically great when during a uptrend the outside bar is red indicating a short move coming up. During a downtrend a green outside bar is ideal for a long indication.

Short Trade Example