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Inside bars and outside bars are single bar patterns that are often identified as having important qualities and break of the bar's extremes imply a continuation of the underlying direction.

An "Inside Bar" occurs when the current bars high and low are within the range of the previous bar. This is often interpreted as market price pausing and being uncertain of the underlying direction of the market.

An "Outside Bar" occurs when the current bars high and low exceed the extremes of the previous bar. This is often interpreted as the market having two conflicting views, the market has both buyers and sellers entering the market and thus break of the extremes (high or low) may provoke a further move in one direction.