The Double Inside Bars indicator designed for Metatrader 5 scans currency pairs to identify a particular candlestick pattern known as the inside bar.
It is characterized by a specific arrangement of candlesticks where one candlestick is completely contained within the trading range (high and low) of the previous candlestick.
Here’s how to identify and interpret an inside bar pattern:
- Previous Candlestick (Mother Bar): The first candlestick in the pattern is known as the “mother bar” or the “outside bar.” This candlestick typically has a higher high and a lower low compared to the candlestick(s) that follow.
- Inside Candlestick(s): The candlestick(s) that follow the mother bar are smaller in size and have both their high and low within the high and low of the mother bar.
- Price Range Contraction: The inside bar pattern represents a contraction in price range or a period of consolidation. It indicates a temporary pause or indecision in the market.
- Potential Breakout or Continuation Signal: Traders often watch for inside bars as potential signals for future price movements. The breakout direction (upward or downward) from the inside bar’s range can provide clues about the next price trend.
- Bullish Inside Bar: When an inside bar forms after a downtrend and breaks out to the upside, it can signal a potential bullish reversal or continuation of an uptrend.
- Bearish Inside Bar: When an inside bar forms after an uptrend and breaks out to the downside, it can signal a potential bearish reversal or continuation of a downtrend.
The following indicator inputs and parameters can be modified: inside bar up, inside bar down, arrow signals, colors, and more.
Make yourself familiar with this technical indicator and test it first on a demo account for an extended period of time.
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The following chart shows how the Inside Bar Scanner indicator looks like when applied to the MT5 chart.
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Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the Double Inside Bars.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click on the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on the properties
- Now you can edit the inputs, colors, levels, scale, and visualization
- Finally, click the OK button to save the new configuration