Description
The PZ Sandwich Bars indicator scans the chart for one of the most effective and overlooked breakout formations: a single candle that fully engulfs several previous bars—compressing price and then breaking out strongly. This "sandwich" of compressed price action followed by a breakout offers a high-probability setup for directional trades.
A Sandwich Bar is defined as a bar that entirely contains the range of multiple preceding bars, effectively rejecting all previous price activity and dominating the range. These setups often occur after periods of consolidation and signal a strong intent by the market to move in a defined direction.
Reading the signals is straightforward:
- A blue box indicates a bullish breakout
- A red box indicates a bearish breakout
You can customize the pattern size by adjusting the minimum and maximum range of bars that should be contained within the sandwich formation. This allows you to filter out weak setups and focus on high-compression breakouts.
Input Parameters
- Min Range: Minimum number of bars the sandwich candle must engulf
- Max Range: Maximum number of bars the sandwich candle may engulf
- Max History Bars: Number of past bars to scan when the indicator loads
- Drawing Settings: Customize box color, line thickness, and label sizes
- Alerts: Enable or disable notifications via popup, email, push, or sound
What To Expect
This indicator is designed to highlight rare but powerful breakout patterns. Sandwich Bars do not occur frequently, but when they do, they offer clear, visual trade setups that can be incorporated into both discretionary and automated trading strategies. Because the pattern is based on completed candles and fixed conditions, it does not repaint or backpaint.
