DIBS – Sometimes Zooming In Can Reveal Interesting Opportunities

I am using the chart of Silver to demonstrate how zooming into a lower time frame from the 1H can sometimes help uncover potentially interesting DIBS opportunities. The chart in  this post highglights some price action on May 18 and May 19:

·         May 18 Consolidation Before Breaking Out: The 1H TF chart on the left shows no inside bars printed as price broke up above the European open line (blue horizontal line) and then consolidated above the line (looks like former resistance on May  17) for a few hours as it printed a few spiky bars and the range generally compressed before the upside breakout halfway through the day. The 30M TF chart to the right shows that this consolidation period printed several DIBS signal bars (red vertical lines through the inside bars) in the build up to the breakout.

·         May 19 Sell Off and Pullback: The sell off on the 1H time frame on May 19 shows some wide ranging and spiky bars, however inside of this price action there were some potential inside bar breakout opportunities below the European open line.

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Silver seems to be liking some of the inside bar breakouts as it bounces around in the range of 32.50-36.50 that is being explored following the major meltdown from a couple of weeks ago.

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