Inside Bar Candle

gestern

This indicator is designed to identify Inside Bar candles that break out or break down in relation to the New Week Opening Gap (NWOG) and the associated Premium and Discount Zones. It combines price action analysis with the NWOG framework to highlight key trading opportunities.

Key Features
Inside Bar Detection:

An Inside Bar is a candlestick pattern where the high is lower than the high of the previous candle, and the low is higher than the low of the previous candle.
This pattern indicates a period of market consolidation and potential for a breakout or breakdown.
NWOG (New Week Opening Gap):

The NWOG is defined as the price gap between Friday's close and Monday's open.
It is plotted as two horizontal lines:
NWOG High (top of the gap).
NWOG Low (bottom of the gap).
Premium and Discount Zones:

The NWOG range is divided into two zones:
Premium Zone: The area above the midpoint of the NWOG range.
Discount Zone: The area below the midpoint of the NWOG range.
These zones help identify whether the market is in a favorable area for buying or selling.
Breakout and Breakdown Logic:

Breakout:
Inside Bar candle closes above the NWOG High.
Candle must open in the Premium Zone.
Breakdown:
Inside Bar candle closes below the NWOG Low.
Candle must open in the Discount Zone.
Visual Signals:

Breakout Signals: Small green dots plotted above bars in the Premium Zone.
Breakdown Signals: Small red dots plotted below bars in the Discount Zone.
Shaded areas on the chart represent the Premium (green) and Discount (blue) zones.
Alerts:

Configurable alerts notify traders when a valid breakout or breakdown is detected.
How to Use
Trend Continuation or Reversal:

Use the breakout signals in the Premium Zone to confirm bullish trends or reversals.
Use the breakdown signals in the Discount Zone to confirm bearish trends or reversals.
Trade Setup:

Look for Inside Bars forming near or within the NWOG and wait for a breakout or breakdown signal.
Use the zones to evaluate the trade's risk-to-reward potential:
Premium Zone: Favor selling or avoiding long trades.
Discount Zone: Favor buying or avoiding short trades.
Clean Chart Design:

Small signal dots and shaded zones keep the chart clean and easy to interpret.
Advantages
Zone-Specific Signals:
Reduces noise by only highlighting relevant price action around the NWOG.
Price Action and Zone Confluence:
Combines Inside Bar breakout logic with NWOG zones for higher probability signals.
Custom Alerts:
Alerts ensure traders are notified of potential trade setups without constantly monitoring the chart.
This indicator is ideal for traders looking to leverage price action patterns within a structured market framework like NWOG while maintaining a clean and actionable chart view. Let me know if you'd like further refinements!