Imortance of Inside- and Outside Bars
Inside bars are completely engulfed by its previous bar. The pattern is also known as "harami" (pregnant). Outsidebars engulf the previous bar.
Inside bars might mark situations before an outbreak. They are a condensed form of a symmetrical triangle. Symmetrical triangles represent a battle between bulls and bears. There can be an outbreak to either side, mostly the outbreak is in direction of the main trend.
The combination of inside bar followed by an outside bar build the so called "popgun" pattern. Popgun Patterns are mostly followed by an outbreak on either side of the outside bar (see image 4). In many cases the outside bar might preceded by an incomplete inside bar, which is not marked. Therefore outside bars alone might also be an indicator of a sudden outbreak.
I use this indicator in D1 to have an idea of a possible outbreak in conjunction of my "Swiss OpeningRangeIndicator".
The indicator works an any timeframe. In small time frames the patterns might not be significant. I suggest M3 to D1. In M1 the indicator shows sluggish behaviour of the price.
inpArrowCode => Code for Up-Arrow (see mql5.com)
inpArrowCode1 => Code for Down-Arrow (see mql5.com)
inpArrowDistance1 => Distance in pixels for up arrow labels
inpArrowDistance2 => Distance in pixels for down arrow labels
let indicator talk => warns you by sounds "inside bar" and "outside bar" as soon the complete bar is closed.
show inside bars => show inside bar
show outside bars => show outside bar