Inside Day Narrow Range 4

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:

1. NR4 (Narrow Range 4)
   The current bar has the smallest high–low range compared to the previous three bars.

2. 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.