Inside Column

No matter whether it is a bullish or bearish column, when the high of the current column is lower than the high of the previous column and the low of the current column is higher than the low of the previous column, it is defined as an inside column. It is a 2-candle neutral pattern.

This concept is explained in the book of Prashant Shah on Point & Figure. The inside columns show the previous swing is within the current swing. The chart shows signs of correction or consolidation. It helps in defining the triangle or consolidation pattern when there is a series of inside columns.

This pattern can be plotted on the chart by adding it from the study menu in TradePoint & RZone. The pattern is also available in the system builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.