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A good number of inside bar patterns formed on USD/JPY and GBP/JPY again but a lot of early exit signals popped up. Most of these still managed to lock in gains, though!

If this is the first time you’re reading about this strategy, I suggest you take a look at the system rules and its Q1 performance.

For the past few weeks, I’ve been running a test of the adjusted stop loss size (from the original 20% of the first candlestick to 40% of its length) on both USD/JPY and GBP/JPY and I’m seeing decent improvements for both pairs. This particular week had a lot of sideways action so early exit signals on new inside bar patterns occurred more frequently.

Here’s what I’m talkin’ about:

GBP/JPY 4-hour Forex Chart
GBP/JPY 4-hour Forex Chart

As always, I’ve zoomed in to the short-term time frames to see if these signals were triggered and if any stops or targets were hit.

Three out of the five new IB signals still caught wins for Guppy!

GBP/JPY Inside bar

Here’s how the signals lined up for USD/JPY:

USD/JPY 4-hour Forex Chart
USD/JPY 4-hour Forex Chart

Zooming in to the short-term time frames shows that both positions opened resulted to losses for the pair while the last inside bar signal wasn’t triggered.

USD/JPY Inside bar

Okay, so that’s not exactly the best week for the Inside Bar Momentum strategy so far but I’m not giving up on this system!

I’m just gonna chalk this up to range-bound market conditions for most yen pairs in the past few days while traders make up their minds where to take the Japanese currency next.