This past Wednesday I did an Open Office Hours session on YouTube Live and one of the topics I spoke about was the nature of outside bars and why setting your stop at the highs or lows of outside bars is such a terrible idea.
You can find countless examples across all timeframes but here’s a good example that played out on the 4H chart on TIF.
Today TIF goes inside bar reversal and down taking out all the outside bar lows.
If you’re setting your stops under/above outside bars do yourself a favor and watch this past week’s video. The conversation regarding stops starts at [40:45].