Spot the coiled spring on this chart

See that tiny candle? It's a spring being pressed down.

Here's how to trade it when it lets go.

It's called an inside bar. Its whole range, high to low, sits inside the candle before it.

This is a real gold 4-hour chart. On June 9, a big red candle.

Then this tiny candle, from 4,274 down to 4,250. Completely inside.

It's a pause. Buyers and sellers are both waiting. Nobody knows the direction yet.

So don't guess. Mark its high and its low, and let price choose.

The break shows the direction. Trade the side it breaks.

Here, the next candle broke below 4,250 and closed at 4,218.

That's the sell signal. Your stop goes on the other side, just above 4,274.

A tiny candle means a tight stop. That's what makes this setup useful.

The next day, gold dropped to 4,023.50.

If it breaks up instead, flip it: buy, with the stop below the low.

Save this. Inside bar: a pause. Mark its high and low. Trade the break, stop on the other side.

Your turn. Here's an inside bar on the pound. Which way does it break? Up, down, or wait and see? Comment below.

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