Outside-Bar Arrows Filtered by Candle Range
Summary
This indicator marks bullish and bearish outside bars with arrows. It first checks whether the signal candle’s range reaches a configurable minimum, expressed relative to pip size. A bearish signal requires the candle to extend above the prior high and close below the prior low; a bullish signal requires it to extend below the prior low and close above the prior high. The arrows are placed away from the candle using an offset based on twice the 14-period average true range, with separate colors for bullish and bearish signals.
The description presents a visual pattern detector, not a complete trading strategy. It does not specify how to enter, exit, or size positions, and it offers no backtest or evidence about the signals’ predictive value. The candle-range threshold can be adapted in settings, but no selection procedure is given. As a result, the indicator teaches a concrete outside-bar definition and display method while leaving validation, market selection, and risk controls to the user.
Key ideas
- The indicator flags outside bars only when their range meets a configurable minimum.
- A bearish signal closes below the previous candle’s low after exceeding its high.
- A bullish signal closes above the previous candle’s high after falling below its low.
- Arrow placement uses an offset based on the 14-period average true range.
- No entry, exit, or performance-testing rules are provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.