What is the DIBS method, that is used for the trade continuation?

<p id="isPasted">The DIBS (Daily Inside Bar System) method is a trading strategy that is used to identify trade continuation opportunities in the forex market. The strategy is based on the concept of an inside bar, which is a bar or candlestick that is completely contained within the previous bar or candlestick. Here's how the DIBS method works:</p><ol><li>Identify the high and low of the previous day's candle.</li><li>Wait for an inside bar to form on the current day's chart. This means that the high and low of the current day's bar are completely contained within the high and low of the previous day's bar.</li><li>Place a buy-stop order above the high of the inside bar or a sell-stop order below the low of the inside bar.</li><li>If the order is triggered, enter the trade and place a stop loss order below the low of the inside bar for long positions or above the high of the inside bar for short positions.</li><li>Hold the position until the market reaches a predetermined profit target or the stop loss is triggered.</li></ol><p><br></p><p>The DIBS method is a simple yet effective strategy for identifying trade continuation opportunities. By waiting for an inside bar to form, traders can enter trades with a clear stop loss level and a high probability of success. However, it's important to note that the DIBS method is not foolproof and should be used in conjunction with proper risk management techniques. Traders should also consider other factors such as market trends, support, and resistance levels, and news events when using the DIBS method.</p>

<p id="isPasted">To use the DIBS method, traders look for a strong bullish or bearish trend on the daily chart. Once the trend is identified, they wait for an inside bar to form on the daily chart. If the inside bar is in the same direction as the trend, traders can enter a trade in the direction of the trend, with a stop-loss order placed below the low of the inside bar. The trade can then be held until the trend shows signs of weakening or reversing.</p><p>The advantage of the DIBS method is that it allows traders to enter trades in the direction of the prevailing trend, which can increase the probability of success. Additionally, the use of a stop-loss order helps to manage risk and limit potential losses.</p>