Inside Day Narrow Range 4
- Indicadores
- Versão: 1.0
IDNR4 — Indicator Description (English)
The IDNR4 (Inside Day Narrow Range 4) is a volatility-compression pattern that identifies potential breakout conditions. It combines two concepts:
-
NR4 (Narrow Range 4)
The current bar has the smallest high–low range compared to the previous three bars. -
Inside Bar (ID)
The current bar’s high and low are fully contained within the range of the previous bar.
Signal Logic
• When the bar is NR4 only, it is highlighted as a normal contraction pattern.
• When the bar is both NR4 and Inside Bar, it represents stronger compression and is highlighted as a higher-probability setup.
Usage
The IDNR4 pattern is typically used to anticipate volatility expansion after a period of contraction. Traders look for breakout movements following the pattern, often using the high/low of the signal bar as reference for entries.
