Effective Day Trading Method #1: Inverse Ascending Triangle With Inside Bar Pattern

  • Price Pattern: An inverse ascending triangle pattern appears on the chart with an Inside bar candlestick pattern.
  • Entry: In the bullish case, we place a buy stop order above the high of the small bar. In the bearish case, we place a sell stop order below the low of the small bar. If the order is not matched after a few hours, we will cancel the transaction.
  • Profit Target: Our exit will be on the opposite side of the inverse ascending triangle.
  • Stop Loss: Stop loss is placed so that the risk/reward ratio is 2:1 or higher, or can be placed below the bottom of the small candle in the Insidebar set of candles.

Strategy example in CHF/JPY


In this example, the Inside Bar was formed inside the inverse ascending triangle. We place a buy stop above the intraday high of 123.68 with a target of 126.00 (triangle top), stop loss is placed at 122.70. The reward/risk ratio is 2.3:1.

Effective Day Trading Method #2: Descending Triangle With Inside Bar Pattern

  • Price Pattern: After the price broke out of the descending triangle pattern, an Inside Bar was formed.
  • Entry: We place a sell stop order below the low of the small candle. If the order is not matched after a few hours, we will cancel the pending order.
  • Profit Target and Stop Loss: Stop loss and take profit should be set at prices that give us a 2:1 or higher risk/reward ratio.
Strategy example with GBP/USD

After a downward break out of a triangle, a pair of Inside Bar candlesticks formed. We place a sell stop order below the low of the small bar at 1.5080 with a profit target of 1.4900 (low of the parent bar - the big bar). Stop loss is placed at the top of the Inside Bar at 1.5150. The reward/risk ratio is 2.6:1.

Effective Day Trading Method #3: Double Bottom with Upsloping Neckline and Inside Bar pattern

  • Price Pattern: An Inside Bar candlestick pattern formed at the end of a double bottom with a sloping neckline.
  • Entry: The buy stop order is placed above the top of the Inside Bar. If the order is not matched after a few hours, the pending order will be cancelled.
  • Profit Target: Our exit will be at the next support or resistance. We can also use the formula to estimate the price of the Double Bottom pattern – the height of the pattern that projects up from the breakout point.
  • Stop Loss: Stop loss is placed at a price that allows for a 2:1 or higher risk/reward ratio.
Strategy example with GBP/USD


The inside bar is formed when the price touches the sloping neckline of the double bottom. We place a buy stop order slightly above the intraday high of 1.5188 with a profit target around 1.5525 (next resistance) and a stop loss below the intraday low of 1.15100. The reward/risk ratio is 3.9:1.

Effective Day Trading Method #4: Flag Pattern With Price Bar Reversal
  • Price Pattern: After forming a strong directional candle, with a wide body and closing near the high (bullish case) or near the low (bearish case), the price retraces and forms a corrective flag pattern. Then a reversal candle is formed inside the flag pattern.
  • Entry: In the bullish case, we place a buy stop order above the high of the reversal bar. In contrast to the bearish case, we would place a sell stop order below the low of the reversal bar. If after a few hours the order is not filled, we will cancel.
  • Profit Target: Our take profit exit will be at the next support or resistance.
  • Stop Loss: The stop loss is set at a price that allows for a 2:1 or higher risk/reward ratio.
Example of a strategy in the EUR/JPY pair

After a strong bullish bar from 129.50 to 134.50, a corrective flag pattern appeared. A reversal candle appeared at the bottom of the flag pattern. We place a buy stop order slightly above the top of 133.25 with a profit target around 135.00 (next resistance). Stop loss is placed below the bottom of the reversal candle at 132.50. In this case, the reward/risk ratio is 2.3:1.

Effective Day Trading Method #5: Double Top/Twin Bottom Pattern After Price Touches Support/Resistance
  • Price Pattern: This advanced pattern consists of a double top (two bottom) that stalled before a support (resistance). After the price is rejected, it will correct and form an Inside Day candle or an NR4 type candle (the candle with the lowest range in the last 4 sessions).
  • Entry: In case of Double Top and price leveling off at support, we will place a sell stop order below the bottom of Inside Bar or NR4. Conversely, for a Double Bottom and price leveling off at resistance, we would place a buy stop order above the top of the Inside Day or NR4. In both cases, if after a few hours the pending order does not match, we will cancel.
  • Profit Target: Our take profit exit will be at the next support or resistance.
  • Stop Loss: The stop loss is set so that the risk/reward ratio is 2:1 or higher.
Strategy example with AUD/USD

Pattern two is formed in the 0.6900 zone. The price then broke out of the pattern to the upside but stopped at the 0.7400 resistance. After a downward correction from the resistance area, the price will form an Inside Bar. We will place a buy stop above the intraday high of 0.7197, targeting the 0.7400 resistance. Stop loss is placed below the intraday low of 0.7110. The reward/risk ratio is 2.3:1.

Effective Day Trading Method #6: Double Top / Double Bottom Pattern with Isosceles Triangle and Inside Bar
  • Price Pattern: After confirming the double top or double bottom, an isosceles triangle is formed. We will identify an Inside Bar to try to capitalize on the trend of the two patterns above.
  • Entry: In the case of a double top, we will place a sell stop order below the bottom of the Inside Bar. In contrast to the double bottom, we will place a buy stop order above the top of the Inside Bar. In both cases, if after a few hours there is no order, we will cancel.
  • Profit Target: Our take profit exit will be at the next support or resistance.
  • Stop Loss: The stop loss is set so that the risk/reward ratio is 2:1 or higher.
Strategy example with USD/JPY


After the double top is confirmed, a clear symmetrical triangle is formed. Inside it, we observe an Inside bar pattern. Here, we place a sell stop order slightly below the 119.78 low with a price target at 118.00 support. Our stop loss is placed above the downtrend line of the isosceles triangle at 121.00 – slightly up. The reward/risk ratio does not reach 2:1, so you can choose not to trade with this pattern.

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