Description
Inside bars are a staple of price action trading—formed when a bar (or series of bars) is completely contained within the high and low of the previous bar. These formations often signal a pause before a breakout, and when combined with proper context, they offer strong entry points for momentum traders.
The PZ Inside Bars indicator automates this process by detecting valid inside bar patterns and only signaling a breakout after the bar closes and confirms the direction—avoiding premature or false signals caused by temporary price movement.
Once a breakout is confirmed, the indicator draws a color-coded box:
- Blue box = Confirmed bullish breakout
- Red box = Confirmed bearish breakout
- Green box = Inside bar detected, breakout pending
This clear visual system makes it fast and easy to interpret market conditions without scanning every candle manually.
Input Parameters
- Min Range / Max Range: Set the minimum and maximum number of inside bars in a formation.
- Max History Bars: Limit how far back the indicator scans on load for improved performance.
- Drawing Settings: Customize the size and colors of the breakout boxes for better visibility.
- Alerts: Enable or disable visual, sound, push, and email alerts for new breakouts.
Logic and Behavior
- The indicator only confirms a breakout after bar close, reducing noise and false positives.
- It avoids detecting breakouts if the high or low of the mother bar is breached prematurely.
- All boxes and signals are non-repainting and non-backpainting, meaning they remain stable once confirmed.
- Designed for all timeframes and instruments—especially effective when used in conjunction with support/resistance or trend filters.
Disclaimer
This indicator is a tool for technical analysis only and is designed to assist in chart interpretation. It does not constitute financial advice, investment recommendation, or any guarantee of results. Trading involves a high risk of loss and can result in the loss of your entire capital. Use this indicator at your own risk and only with money you can afford to lose. For complete details, please read our Terms and Conditions.
