This script simply shows OL (Open=Low), OH (Open=High) and IB (Inside Bar). I personally use OL and OH to take quick scalping trades with very low risk.
OL candle indicates that candle's Open and Low prices are same and a Long trade can be taken with a stoploss below candle low.
OH candle indicates that candle's Open and High prices are same and a SHORT trade can be taken with a stoploss above candle high.
Candles with navy blue colour indicates an Inside Bar. An inside bar is a common pattern where the high and low of one candle occur inside the high and low of the prior candle. Inside bar shows a contraction in volatility and are often a continuation pattern. Previous candle (prior candle to inside bar) is known as "Mother candle" and trades can be taken on breakout from "Mother candle" , in the direction of breakout and keeping a stoploss below/above "Mother candle".
This script can be used in any time frame. Smaller time frames generate more signals compared to higher time frames.
Release Notes
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1 Changed IB candle color 2 Added code to track ioi (Inside Bar - Outside Bar - Inside Bar) candle 3 Added VWAP
Hi, great idea. Do you know some pattern with low risk like IOI and OL OH. Its great btw
humblerat301
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It works very well on Banknifty. Can you please share - how to use - ioi (Inside Bar - Outside Bar - Inside Bar) candle
truetechlevels
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@humblerat301, Thanks. For "ioi", trades can be taken in the direction of breakout/breakdown from "ioi" candle with initial stoploss below/above "ioi" candle. Do some paper trades before going with real money