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Not all inside bar patterns churned out valid signals for this strategy, but the ones that did mostly turned out to be winners. Take a look!

If this is the first time you’re reading about this forex strategy, I suggest you take a look at the system rules before reading on.

Also, this version makes use of an adjusted stop loss size on both USD/JPY and GBP/JPY.

The size of the stop loss was adjusted from the original 20% of the first candlestick to 40% of its length.

First up, here’s what went on with USD/JPY:

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

As you can probably tell from the chart, the pair did form several inside bar patterns but only the ones marked above had their entries triggered.

As in the other week, several bullish inside bar formations were followed by a selloff while bearish ones saw rallies soon after.

Here’s how the opened positions turned out:

The first three valid signals all chalked up gains while the last one got stopped out. Still, the wins were enough to put USD/JPY up by 48 pips for the week.

Now here’s what went on with Guppy:

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

Just like the other pair, GBP/JPY also saw a bunch of inside bar patterns but not all generated open positions.

Also, its first few positions fared much better than the last, as the pair scored back-to-back wins then got stopped out on the third play.

Here’s how it turned out:

Thanks to the relatively large gain on the second position, Guppy was able to end up with a 52-pip win for the week.

All in all, the Inside Bar Momentum Strategy managed to catch a total of 100 pips, adding to the gains over the past couple of weeks.

The percentage win/loss depends on how position sizes are calculated.

ICYMI, check out how the Inside Bar Momentum Strategy fared for Q2 2020 and how other mech systems are stacking up in Forex Ninja’s Systems Showcase!