An inside bar is a bar or series of bars which is/are completely within the range of the preceding bar, i.e. it has a higher low and lower high than the bar immediately before it (some traders use a more lenient definition of inside bars to include equal bars). Instead of the market going with the initial break of the inside bar pattern, the market “fakes out” and reverses back past the other side of the inside bar. As we can see in the chart below, a false break of an inside bar pattern occurred and the next day price broke up above the inside bar high and shot higher for the next 6 consecutive days.