The other measuring stick
04.03.04 and 04.03.05 measured containment on bodies — the first and last bid of each session. That was a choice, and there is one other extent a candle offers: its range, from lowest to highest.
Measure containment on ranges instead and you get two more names. An inside bar is a session whose whole range sits within the previous session's; the one before it is often called the mother bar. An outside bar is a session whose range contains the previous one's.
That is all that is new here. Inside bar is harami with the other stick; outside bar is engulfing with the other stick. The relationship has not changed — only what you hold it against.
One pair, two measuring sticks
The same two boards throughout. Switch what you measure and watch the name change.
On bodies the second is contained. On ranges it is the container. Both statements are true of these eight numbers.
When the two sticks disagree
The pair above is not a curiosity — it is the ordinary case, and it is why the distinction matters. The second session's body sits inside the first's, so it is a harami. Its wicks reach past the first session at both ends, so its range contains the first's, and it is an outside bar.
Harami and outside bar are usually read as opposite kinds of event, and here they describe the same two boards. Neither reading is wrong. They are answers to different questions: where did the session begin and end? and how far did it get?
Which is the point of the whole chapter's arithmetic. A pattern name is a measurement plus a choice of what to measure, and the second half is almost never stated out loud.
Inside and outside bars are harami and engulfing measured on range instead of body. Four names, one relationship, two measuring sticks.
Why range containment gets used at all
It has one clear advantage: it cannot be argued with. The highest and lowest prices of a session are two of the four numbers, and either one range fits inside another or it does not. There is no convention to choose — no 60%, no half-of-the-first-body, no midpoint.
Every threshold this Part has met was somebody's decision. Range containment is the rare definition with none, which is why later Parts lean on it. Part 05 uses inside bars structurally, as a way of marking that a market went quiet inside a previous session's extremes, and it does so without importing any of 04.03's conventions.
The cost is that it says nothing about where the sessions opened or closed — the measurement 04.01.04 called the most useful single fact on a board. As always, the stick you pick decides what you can see.
- Session 1 body
- ₹29.20 to ₹30.30
- Session 2 body
- ₹29.50 to ₹30 — inside it, so: harami
- Session 1 range
- ₹29.10 to ₹30.40
- Session 2 range
- ₹29 to ₹30.60 — containing it, so: outside bar
- Numbers that changed between the two readings
- none
A session's range sits entirely inside the previous session's. What do you know about its body?
Which stick does each name use?
Containment, for the fourth and last time. One shape remains in this chapter, and it is not a relationship between candles at all — it is a single board with one measurement pushed as far as it will go.