Three-Bar and Four-Bar Plays Using Breakouts and Bar Patterns

Summary

The visible portion of this strategy script combines a Donchian-channel breakout check with a large-range bar and smaller “collecting” bars. It measures bar range and body size against a long-period ATR, then tests whether price closes outside the prior channel. For bullish and bearish setups, it checks whether subsequent bars contract in size and remain near the large bar’s closing area. Inputs allow users to adjust these thresholds and the channel lookback and offset.

The document is truncated before the complete entry and exit rules appear, so the full three-bar and four-bar triggers, trade management, and strategy behavior cannot be established from the supplied text. It provides no performance results or market-specific evaluation. The visible material describes a pattern framework, but does not show evidence that the rules are profitable or robust across instruments and timeframes.

Key ideas

• The script defines breakout levels using prior rolling highs and lows, offset so price can cross them.
• A candidate gap bar must have a large range relative to ATR and a substantial body.
• Smaller follow-up bars are treated as collection bars when their range contracts and their prices stay near the initial bar’s close.
• The supplied document ends before the complete setup triggers and order rules are visible.
• No backtest results or evidence of profitability are included.

Tags

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