The Popgun Pattern: Trading an Inside Bar Followed by an Outside Bar

Summary

The document defines a Popgun setup as an inside bar followed by an outside bar. The inside bar has a range contained within the prior bar, which the author associates with contraction and a pause. The outside bar extends beyond the preceding bar’s high and low, indicating expansion that may reflect strength in both directions or unstable movement. The basic long rule buys when the outside bar closes above its open; the short rule sells when it closes below its open.

The indicator description also draws arrows and support or resistance guides based on a percentage of the outside bar’s range, and it includes a time window for displaying signals. The author mentions countertrend reversal interpretations as optional ideas. No historical testing, win rate, risk controls, or market-specific evidence is supplied, and the pattern’s outcome depends on context. The accompanying indicator logic and prose contain ambiguities about reversal signals, so users would need to verify the implementation before relying on it.

Key ideas

• A Popgun pattern consists of an inside bar followed by an outside bar.
• The basic long setup buys at the outside bar’s close when that bar closes up.
• The basic short setup sells at the outside bar’s close when that bar closes down.
• The indicator can mark levels derived from a percentage of the outside bar’s range.
• The document supplies no performance evidence, and its optional reversal logic is ambiguous.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.