An Inside Bar candle is a key price action pattern in trading, especially in forex and stocks. It occurs when the current bar or candle is entirely within the range of the previous bar, meaning its high is lower than the previous high and its low is higher than the previous low. This pattern signifies a period of consolidation or indecision in the market, as the price is temporarily moving within a narrower range.

Inside Bars often signal a potential breakout, where the price may sharply move in either direction once the period of consolidation ends. Traders often use Inside Bars as a setup for breakout strategies. A breakout above the high of the mother bar (the previous candle) can signal a bullish move, while a break below the low can indicate a bearish move.

This pattern is more reliable when found in strong trending markets or at key support and resistance levels. Inside Bars can also occur in various time frames, from minutes to weeks, making them versatile tools for traders. However, it's crucial to combine Inside Bar analysis with other indicators and not rely on it solely for trading decisions.