Inside bar setup event
Marks the first one-minute bar of each run whose range sits fully inside the bar before it.
Each one-minute bar is checked against the bar before it. A bar qualifies when its high is strictly below the previous high and its low is strictly above the previous low, so its whole range sits inside the prior bar. The indicator draws a marker only on the first bar of each run of qualifying bars, so a squeeze lasting several minutes gets one marker at its start. It flags the setup bar, not a breakout, and it gives no direction.
How to read it
- Each marker sits on a candle whose high and low both stayed inside the range of the candle before it.
- A run of inside candles gets one marker, on its first candle, so a marker means a new squeeze started.
- The marker gives no direction. Watch the bars after it for a break above the high or below the low of the candle before the marker.
What it outputs
- Inside bar setup
- Marks the first bar of each run of inside bars, where the high is below and the low is above the previous bar's. No direction.
When it fires
Fires on the first bar of a run: its high is below the previous high and its low is above the previous low. The range just tightened inside the prior minute. It does not say which way price will leave, and continuation bars in the same run stay unmarked.
Pitfalls
- Common on one-minute bars: about one bar in ten is marked at default settings, around 92 per trading day on the SPY sample, so most markers are not a setup on their own.
- No direction: the marker comes before the break, and the break can go either way. Wait for the break before acting.
- At defaults it is close to a plain inside-bar marker: only bars that continue an inside run are dropped. The test is strict, so equal highs or lows do not count.