The Inside Bar candlestick pattern is a popular and simple pattern used in technical analysis to signal potential price continuation or reversal. It consists of two candlesticks, where the second one is completely contained within the range of the first one. Here's how the Inside Bar pattern works:

1. **Identification**:

- The first candlestick is called the "mother bar" or "outside bar." It has a larger range and engulfs the second candlestick.

- The second candlestick is the "inside bar." It is characterized by having a smaller range, with its high and low contained within the high and low of the mother bar.

2. **Bullish Inside Bar**:

- A bullish (green or white) inside bar forms when the second candle (inside bar) has a lower high and a higher low than the mother bar.

- This pattern suggests a potential bullish reversal or continuation of an existing uptrend.

3. **Bearish Inside Bar**:

- A bearish (red or black) inside bar forms when the second candle (inside bar) has a higher high and a lower low than the mother bar.

- This pattern indicates a potential bearish reversal or continuation of an existing downtrend.

Key points to remember when trading the Inside Bar pattern:

- Inside Bars often occur during consolidation or periods of indecision in the market.

- The pattern can signal a potential breakout or breakdown of the consolidation phase.

- Traders often look for Inside Bars as part of their analysis when the market is in a range or when they anticipate a significant price move.