Inside Bar Breaks [ITA]
🟠 OVERVIEW
Inside Bar Breaks marks the inside bars, draws the mother bar they formed in, and then scores what happened when price left it. Every break is marked Held or Failed on the bar it resolved, and the running hold rate for the symbol you are looking at sits in the corner.
An inside bar is the easiest pattern on a chart to find and one of the hardest to use. The claim attached to it is that price compresses inside the mother bar and runs when it breaks out. That sentence appears in almost every description of the pattern and almost never with a number beside it. This one counts.
🟠 CONCEPTS
* Inside Bar - A bar whose high and low both sit within the previous bar. The previous bar becomes the mother bar.
* Mother Bar - The range the compression happened inside. It is the level that decides the break, not the inside bar itself.
* Break - A close beyond the mother bar high or low.
* Held - Price stayed outside the mother range for the whole confirmation window.
* Failed - Price closed back inside the mother range before the window ended.
🟠 HOW IT WORKS
When an inside bar forms, the bar before it is stored as the mother bar and drawn as a box. Further inside bars extend the same box, so a three bar compression is one setup and not three.
When a bar closes beyond the mother high or low the break is marked and a window opens. A close back inside the mother range during that window marks the break Failed on the spot. If the window passes without that happening it is marked Held. A break still inside its window is not counted either way, so the rate never moves on an outcome that has not happened yet.
Setups that never break, because price left the range without closing beyond it, are removed from the chart rather than left as boxes that resolved into nothing.
🟠 SETTINGS
* Require A Strictly Inside Bar - Off, equal highs or lows still count. Useful on instruments that trade in ticks.
* Inside Bars Needed - How many consecutive inside bars before the setup is tracked. One is the classic pattern.
* Bars To Confirm A Break - The window. Shorter is stricter.
* Smallest Mother Bar - Ignores compressions inside a bar so small that the break is noise.
🟠 NOTES
The hold rate is specific to the symbol and timeframe on screen. It is a count of what this market did, not a claim about inside bars in general, and it is worth reading on more than one symbol before trusting it.
One break is followed at a time. A new setup cannot be judged while price is still resolving the previous break.
Inside Bar Breaks marks the inside bars, draws the mother bar they formed in, and then scores what happened when price left it. Every break is marked Held or Failed on the bar it resolved, and the running hold rate for the symbol you are looking at sits in the corner.
An inside bar is the easiest pattern on a chart to find and one of the hardest to use. The claim attached to it is that price compresses inside the mother bar and runs when it breaks out. That sentence appears in almost every description of the pattern and almost never with a number beside it. This one counts.
🟠 CONCEPTS
* Inside Bar - A bar whose high and low both sit within the previous bar. The previous bar becomes the mother bar.
* Mother Bar - The range the compression happened inside. It is the level that decides the break, not the inside bar itself.
* Break - A close beyond the mother bar high or low.
* Held - Price stayed outside the mother range for the whole confirmation window.
* Failed - Price closed back inside the mother range before the window ended.
🟠 HOW IT WORKS
When an inside bar forms, the bar before it is stored as the mother bar and drawn as a box. Further inside bars extend the same box, so a three bar compression is one setup and not three.
When a bar closes beyond the mother high or low the break is marked and a window opens. A close back inside the mother range during that window marks the break Failed on the spot. If the window passes without that happening it is marked Held. A break still inside its window is not counted either way, so the rate never moves on an outcome that has not happened yet.
Setups that never break, because price left the range without closing beyond it, are removed from the chart rather than left as boxes that resolved into nothing.
🟠 SETTINGS
* Require A Strictly Inside Bar - Off, equal highs or lows still count. Useful on instruments that trade in ticks.
* Inside Bars Needed - How many consecutive inside bars before the setup is tracked. One is the classic pattern.
* Bars To Confirm A Break - The window. Shorter is stricter.
* Smallest Mother Bar - Ignores compressions inside a bar so small that the break is noise.
🟠 NOTES
The hold rate is specific to the symbol and timeframe on screen. It is a count of what this market did, not a claim about inside bars in general, and it is worth reading on more than one symbol before trusting it.
One break is followed at a time. A new setup cannot be judged while price is still resolving the previous break.
Pine Script developer & trader. I build clean indicators - Smart Money Concepts, scanners, risk tools. ITAtradingtools.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Pine Script developer & trader. I build clean indicators - Smart Money Concepts, scanners, risk tools. ITAtradingtools.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.