Inside and outside bars can be powerful triggers to enter or exit trades from, when price breaks above or below the candle.
The coloring of only the body and not the border of the candle makes it possible to still know whether the candle was bullish/bearish.
This indicator has the unique ability to add/hide labels for each IB and OB.
Small labels are printed on the chart directly below the candle. (See below)
It also has the unique ability to paint the chart background when an IB forms directly after an OB.
This is a special combination of the two, and can also be a powerful signal.
This feature can be turned on/off. (See below)
Thanks to Craig Stine, as some parts of this indicator were adapted from Custom Candle color Inside/Outside candles, Highwave, Star Patt. by Craig_Stine
Updated script to include a chart signal when the combination of an Outside Bar + Inside Bar occurs.
This can be another powerful signal, similar to the Inside Bar + Outside Bar occurs.
Ability to turn the chart signal on/off.
Indicator updated to show 2 new candle combination chart signals:
1) Double Inside Bar: When a 2 inside bars form back to back, the chart paints a background color signal
2) Double Outside Bar: When a 2 outside bars form back to back, the chart paints a background color signal
Double inside and double outside bar combinations can be powerful price action signals.
The double inside bar combination is now the only signal that is turned on by default.
The indicator code was also organized a bit with the addition of these new signals
1) Updated to include labels on the chart for Inside/Outside bar combinations (can still turn on/off).
2) Updated to include labels in the Style Settings for the bar combinations and their background colors (see screenshot in comments)
3) Slightly changed default coloring schemes
4) Refined and reduced the code a bit
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.