Outside Day Failure — Indicator by AleksanderThor

A Price Action pattern that fails! Should only be used on daily and weekly and as a bias.
Target can be used for intraday trading. Inspiration from Inside Day Failure pattern

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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.

Want to use this script on a chart?

study(title = "OF", overlay = true)
showlabel = input(title="Show label", type=bool, defval=true)

insidebar = (high <= high[1] and low >= low[1])
outsidebar = (high[1] > high[2] and low[1] < low[2]) and not (insidebar)

bearishobbf = (outsidebar and (high > high[1] and close < high[1]))
bullishobbf = (outsidebar and (low < low[1] and close > low[1]))

barcolor(bearishobbf ? white : na, 0, true, "OF")
plotshape(showlabel ? bearishobbf : na, title= "OF", location=location.abovebar, color=white, style=shape.arrowdown, text="OF")

barcolor(bullishobbf ? white : na, 0, true, "OF")
plotshape(showlabel ? bullishobbf : na, title= "OF", location=location.belowbar, color=white, style=shape.arrowup, text="OF")