What is the black candle on the charts?
The black candle is an inside bar. It is a sign of consolidation and is very effective as an entry if traded in the direction of the trend. The hour chart inside bar breakout is very effective with a stop very definable if placed one pip beyond the opposite side of that bar. You will see inside bars at key reversal points as well or stall areas and we have many targets to look to exit. If you are in a trade and looking for an exit to secure profit an inside bar may be used as an exit if it is broken in the opposite direction.
