CANDLESTICK PATTERN
Inside bar
A complete high-low range contained by the previous bar.
Rules visible before the outcome
- Current high is no higher than the prior high
- Current low is no lower than the prior low
- Treatment of equal highs and lows is defined
02 / CONFIRMATION
When the idea becomes eligible
A close outside the mother bar or a stop order beyond it; test both separately.
03 / INVALIDATION
What proves it wrong
Opposite side of the mother bar or an ATR-based alternative.
The attractive mistake
During low-liquidity periods, compression can persist or break in both directions.
Make it falsifiable
Bucket by prior trend, mother-bar size and session.
1Freeze the geometry
2Timestamp eligibility
3Count every outcome
4Test unseen data