Sample Page Title

1. INTRODUCTION

OutsideBarTradingSystem 1.00

2-Bar Continuation Sample with Vary-Engulfment Evaluation

Creator: Ich Khiem Nguyen | MQL5: https://www.mql5.com/en/customers/khiemni/vendor

OutsideBarTradingSystem detects Exterior Bar candlestick patterns in your MetaTrader 5 charts routinely. The indicator evaluates every accomplished bar pair towards 4 structural gates, scores surviving patterns throughout six weighted high quality elements, and locations pending purchase cease or promote cease orders on the breakout stage when a legitimate Exterior Bar is confirmed. Entry worth, cease loss, and take revenue ranges are drawn straight on the chart so you’ll be able to assess the commerce alternative somewhat than carry out the calculations manually.

What Is an Exterior Bar Sample?

An Exterior Bar is a two-candle continuation formation the place the second candle’s vary utterly encompasses the primary candle’s vary. The second candle’s excessive exceeds the primary candle’s excessive, and the second candle’s low falls under the primary candle’s low. This vary growth alerts renewed volatility and directional dedication within the route of the sample’s context (uptrend for bullish Exterior Bar, downtrend for bearish Exterior Bar).

The Exterior Bar represents worth vary growth after consolidation. Relatively than instantly closing throughout the first candle’s vary (which might point out indecision like an Inside Bar), the second candle’s vary growth establishes that consumers or sellers have seized management and pushed worth to new extremes. This construction typically precedes continued motion within the established pattern route.

Bulkowski’s analysis ranks the Exterior Bar at place 2 amongst continuation patterns, with a 58% win charge in bull markets when the breakout is upward. The Exterior Bar is a reversal of the Inside Bar sample — the place Inside Bar represents consolidation, Exterior Bar represents growth and momentum dedication.

Bullish Exterior Bar

Seems throughout an uptrend or after a consolidation breakout above a resistance stage. Bar 1 is any candle (massive or small). Bar 2 engulfs bar 1’s total vary: HIGH_2 > HIGH_1 AND LOW_2 < LOW_1. Each bars sometimes shut increased (bullish physique coloration), confirming that consumers keep management. Entry is a pending purchase cease order positioned barely above bar 2’s excessive (HIGH_2 + 0.05×ATR), triggering if worth breaks above the engulfing candle.

Bearish Exterior Bar

Seems throughout a downtrend or after a consolidation breakdown under a assist stage. Bar 2 engulfs bar 1’s total vary. Each bars sometimes shut decrease (bearish physique coloration), confirming that sellers keep management. Entry is a pending promote cease order positioned barely under bar 2’s low (LOW_2 – 0.05×ATR), triggering if worth breaks under the engulfing candle.

Uptrend Context Detection

The indicator checks the pattern previous to the sample formation. If the prior bars present increased lows and better highs, the sample is classed as a bullish Exterior Bar continuation. The context detection examines the three bars earlier than bar 1 to find out pattern route alignment.

How the Indicator Finds Patterns

The indicator evaluates every potential two-bar sample towards 4 sequential gates. All 4 should cross for a sign to be generated.

1. Vary Engulfment gate: Bar 2’s excessive should exceed bar 1’s excessive, and bar 2’s low should fall under bar 1’s low (HIGH_2 > HIGH_1 AND LOW_2 < LOW_1). This confirms the vary growth that defines the Exterior Bar construction.

2. Bar 2 Vary Dimension gate: Bar 2’s complete vary should signify at the least the minimal required vary/ATR a number of (Customary: 0.50×ATR, Strict: 0.60×ATR). This confirms that bar 2 is a major range-expanding candle, not a small engulfing spike.

3. Bar 2 Physique Dimension gate: Bar 2’s physique should signify at the least the minimal required physique/ATR a number of (Customary: 0.20×ATR, Strict: 0.25×ATR). This ensures the candle has significant construction past simply wicks, lowering whipsaw danger on pure spike patterns.

4. High quality gates: Bar 2’s relative vary (bar 2 vary / bar 1 vary) should exceed the minimal threshold (Customary: 1.20×, Strict: 1.30×), and physique ratio should be enough (Customary: 0.40, Strict: 0.45). These gates affirm that the engulfment is significant and the candle isn’t just marginally bigger.

Solely candles passing all 4 gates proceed to high quality scoring and sign registration.

High quality Rating — Evaluating Sample Power

Each sample that clears detection receives a top quality rating between 0.00 and 1.00. Six elements contribute to this rating, every weighted by its contribution to the Exterior Bar’s continuation reliability.

High quality Components

QF-1 and QF-2 carry equal weight (0.20 every) as a result of each contribute to the core structural requirement: vary growth. Vary/ATR measures absolute volatility growth; Relative Vary measures growth relative to the instantly previous candle.

Rating Grades

• Grade A (0.80 – 1.00) — Glorious: Massive vary growth with stable physique construction and robust pattern alignment
• Grade B (0.60 – 0.79) — Good: Dependable Exterior Bar with clear vary engulfment and reasonable physique high quality
• Grade C (0.40 – 0.59) — Common: Legitimate construction however vary growth is modest; use with further affirmation
• Grade D (0.20 – 0.39) — Beneath Common: Marginal setup; increased false breakout danger
• Grade F (0.00 – 0.19) — Poor: Keep away from buying and selling these alerts

High quality Threshold

The default minimal high quality is 0.30. Adjusting this threshold modifications which patterns seem on the chart:

• 0.50 – 0.65: Exhibits solely essentially the most clearly expanded Exterior Bars with sturdy vary/ATR and stable physique metrics — fewer alerts with increased per-signal high quality
• 0.20 – 0.30: Exhibits extra alerts together with weaker growth examples — helpful for analysis or learning the sample throughout totally different market circumstances
• Tip: Begin with the default 0.30 in your chosen image and timeframe and observe a number of dozen alerts earlier than adjusting

Entry Mode: Pending

Exterior Bar patterns use pending purchase cease or promote cease orders positioned on the breakout stage somewhat than quick entry at bar shut. When a legitimate Exterior Bar is confirmed, the system creates a pending order at HIGH_2 + 0.05×ATR (bullish) or LOW_2 – 0.05×ATR (bearish). The order prompts provided that worth breaks above (bullish) or under (bearish) that stage, capturing the breakout transfer.

This displays the character of the sample: bar 2’s vary engulfment establishes growth potential, however the precise directional dedication happens at breakout. Ready for the breakout ensures entry aligns with market consensus somewhat than getting into speculatively at bar shut.

Buying and selling Ranges

Bullish Exterior Bar:

• Entry = Pending Purchase Cease at HIGH_2 + 0.05×ATR
• Cease Loss = sample low − 0.25×ATR

Bearish Exterior Bar:

• Entry = Pending Promote Cease at LOW_2 – 0.05×ATR
• Cease Loss = sample excessive + 0.25×ATR

The sample low/excessive is the minimal/most of bar 1 and bar 2. The cease loss buffer of 0.25×ATR is positioned past this excessive. A break past the sample excessive invalidates the continuation premise.

Take revenue ranges are calculated from entry utilizing configurable risk-reward multiples (default: 1R, 2R, 3R, 4R from entry to cease distance).

What You See on the Chart

When an Exterior Bar sample passes all detection gates and high quality filters, the indicator attracts the next:

Sign Markers

• Arrow icons: Upward inexperienced arrows mark bullish Exterior Bar patterns; downward crimson arrows mark bearish patterns. Grey arrows point out alerts blocked by an energetic filter.
• High quality labels: A numeric rating (e.g., “0.65”) seems close to every sign, displaying how the sample ranked throughout all six high quality elements.

Buying and selling Strains

• Entry line: An orange horizontal line on the pending order stage — HIGH_2 + 0.05×ATR (bullish) or LOW_2 – 0.05×ATR (bearish)
• Cease Loss line: A crimson horizontal line labeled “SL” — positioned past the sample excessive with an ATR buffer
• Take Revenue traces: As much as 4 inexperienced horizontal traces labeled TP1 by means of TP4, spaced at configurable R:R multiples from the entry stage

Visible Zones

• Sample spotlight: A shaded rectangle spans each bars of the Exterior Bar, making it simple to establish which pair triggered the sign. The danger zone between entry and SL is shaded in crimson; reward zones between entry and every TP stage are shaded progressively lighter.
• Monitoring dots: Small coloured dots replace because the sign state modifications — white for pending (order positioned, awaiting breakout), yellow for energetic (breakout triggered, commerce reside), inexperienced for goal hit, crimson for cease hit.

Sign Lifecycle

1. Pending: Pending purchase cease or promote cease order is positioned at breakout stage — ready for worth to interrupt above/under
2. Energetic: Breakout triggered, commerce entry occurred, commerce is reside
3. Goal Hit: Value reached a take revenue stage
4. Cease Hit: Value reached the cease loss

Settings You Can Alter

Detection Parameters

Detection Preset Values

Customized Threshold Parameters

Settings Suggestions

• Start with the Customary preset and default high quality threshold in your chosen image; observe at the least two to 3 weeks of alerts earlier than adjusting
• If Customary produces too many alerts, elevate Min High quality to 0.50 somewhat than switching to Strict — this preserves detection sensitivity whereas filtering out weaker examples
• The vary growth gate (0.50× ATR Customary) permits reasonable growth; on unstable devices, improve to 0.60 for extra pronounced vary dominance
• Keep away from slicing the SL buffer under 0.20×ATR — the sample excessive is the logical invalidation level, and a few retesting is regular earlier than the transfer develops

Greatest Timeframes and Markets

Really helpful Timeframes

• H1 — High quality: Excessive | Frequency: Medium | Greatest for: Day merchants looking for clear range-expansion setups at intraday assist and resistance; really useful start line
• H4 — High quality: Excessive | Frequency: Decrease | Greatest for: Swing merchants who need well-formed Exterior Bar patterns with sturdy follow-through potential
• M15 — High quality: Medium | Frequency: Excessive | Greatest for: Scalpers wanting frequent alerts throughout energetic session hours
• D1 — High quality: Highest | Frequency: Low | Greatest for: Place merchants looking for textbook Exterior Bar formations at main day by day construction ranges

Greatest Markets

• XAUUSD (Gold): Exterior Bar patterns on H1 and H4 continuously mark momentum continuation factors, notably throughout London and New York session crossovers
• Main foreign exchange pairs (EURUSD, GBPUSD, USDJPY): Exterior Bar formations are frequent after vary breaks, particularly close to spherical numbers and session open costs
• Indices (US30, NAS100): Exterior Bar patterns close to prior highs can mark continuation entry factors after breakouts
• Oil (USOIL): Sturdy Exterior Bar formations seem after sharp upward or downward strikes on H1 and H4

The indicator works on any image and timeframe. H1 with the Customary preset on XAUUSD is the really useful beginning configuration.

Getting Began — Fast Setup

1. Open MetaTrader 5 and cargo a chart (XAUUSD on H1 is an effective start line)
2. Within the Navigator panel (Ctrl+N), broaden Indicators → Customized and find OutsideBarTradingSystem
3. Drag the indicator onto the chart
4. Within the settings dialog, choose Detection Preset (Customary really useful for first use) and click on OK — the indicator will scan historical past and show detected patterns instantly
5. Observe the alerts: inexperienced upward arrows point out bullish Exterior Bar patterns; crimson downward arrows point out bearish patterns
6. Examine the standard rating on every sign — concentrate on patterns scoring 0.50 or increased when beginning out
7. Elective: Allow alerts within the ALERTS part to obtain notifications when new patterns type in real-time

All Options at a Look

• Computerized bullish and bearish Exterior Bar two-candle detection on any image and timeframe
• 4-gate structural detection: vary engulfment, bar 2 vary/ATR, bar 2 physique/ATR, relative vary and physique ratio high quality gates
• 6-factor weighted high quality scoring (vary/ATR 0.20, relative vary 0.20, CLV 0.20, physique ratio 0.15, pattern alignment 0.15, physique coloration 0.10)
• Development context detection utilizing 3-bar prior worth motion and directional evaluation
• 3 detection presets: Customary, Strict, Customized (user-defined thresholds)
• Pending purchase cease or promote cease entry at breakout stage (not quick)
• Sign states and lifecycle monitoring
• High quality filter to suppress weak patterns under threshold
• Excessive zone filter (overbought/oversold rejection)
• Stoploss hunt filter (liquidity sweep validation)
• Reverse sign filter (stop conflicting alerts)
• Danger/Reward with 3 cease loss strategies (Donchian Channel, ATR, Sample)
• As much as 4 take revenue ranges (TP1-TP4) at configurable R:R ratios
• Donchian Channel trailing cease loss
• MTF Scanner (as much as 150 symbols × 8 timeframes)
• Market construction evaluation (BOS / CHOCH)
• 4-channel alert system (popup, sound, push, electronic mail)
• Sign statistics dashboard
• Skilled chart themes (Darkish, Gentle, Customized)
• EA sign buffers for automated buying and selling

For detailed guides on every function, see the MANUAL included with the indicator.

Widespread Questions

Q: What’s the distinction between Exterior Bar and Inside Bar?

Inside Bar represents consolidation and indecision: bar 2’s vary is totally contained inside bar 1’s vary (HIGH_2 <= HIGH_1 and LOW_2 >= LOW_1). Exterior Bar represents growth and dedication: bar 2’s vary utterly incorporates bar 1’s vary (HIGH_2 > HIGH_1 and LOW_2 < LOW_1). Inside Bar typically precedes a breakout; Exterior Bar typically confirms a breakout has begun.

Q: Why does the indicator use pending orders as an alternative of quick entry?

The Exterior Bar’s defining function is that bar 2’s vary expands past bar 1’s extremes — the growth sign happens at bar shut, however the precise directional dedication and affirmation of continuation happens when worth breaks above (bullish) or under (bearish) that vary. Ready for the breakout ensures entry aligns with market consensus that the growth is significant somewhat than getting into speculatively at bar shut.

Q: How do I distinguish bullish from bearish Exterior Bars?

Bullish Exterior Bars sometimes happen throughout uptrends with each bars closing increased (bullish physique coloration) and are entered with purchase cease orders above the excessive. Bearish Exterior Bars sometimes happen throughout downtrends with each bars closing decrease (bearish physique coloration) and are entered with promote cease orders under the low. The indicator’s route filter and pattern evaluation detect this context routinely.

Q: What does “pattern alignment” imply for Exterior Bar?

The indicator checks the three bars earlier than bar 1 of the potential sample to ascertain whether or not an uptrend or downtrend is in place. If bars are making increased highs and better lows, an uptrend is established; if making decrease highs and decrease lows, a downtrend is established. Bullish Exterior Bars rating increased when forming throughout confirmed uptrends; bearish Exterior Bars rating increased throughout downtrends. This context detection aligns alerts with the continuation premise.

Q: Why does the indicator place breakout orders above the excessive as an alternative of precisely on the excessive?

Purchase cease orders are sometimes positioned barely above (sometimes HIGH_2 + 0.05×ATR) to make sure the order triggers cleanly on true breakout momentum somewhat than on minor wicks or bid/ask unfold noise on the precise excessive. This buffer improves entry high quality by requiring barely extra conviction earlier than triggering.

Q: What if a number of patterns type shut collectively?

If a number of Exterior Bar patterns type on close by bars, the spacing filter prevents them from all showing as alerts. The Min Bars Between Patterns setting (default: 3 bars) ensures that solely the highest-quality sign is proven when patterns cluster. Alter this setting for those who favor to see all patterns no matter spacing.

What’s New — Model 1.00

That is the preliminary launch of OutsideBarTradingSystem. Key options embrace:

• Exterior Bar bullish and bearish two-candle detection utilizing 4-gate structural validation
• 6-factor weighted high quality scoring with balanced concentrate on vary growth (0.40 weight mixed) and construction high quality
• Development context detection from 3-bar prior worth motion to differentiate bullish from bearish Exterior Bars
• Customary and Strict presets, plus totally customizable Customized threshold mode
• Pending purchase cease or promote cease entry at breakout stage above/under the engulfing candle
• 7-layer filter chain (High quality, Excessive Zone, Route, Stoploss Hunt, Sign Zone, Market Construction, Reverse Sign)
• Multi-timeframe scanner protecting as much as 150 symbols and eight timeframes concurrently
• Automated Entry/SL/TP ranges with Donchian Channel trailing cease
• 4-channel alert system (popup, sound, push notification, electronic mail)
• EA sign buffers enabling automated buying and selling methods to devour Exterior Bar alerts by way of iCustom()
• Skilled chart themes (Darkish, Gentle, Customized) for prolonged buying and selling periods

Getting Assist

In case you have questions or want assist:

Able to Begin?

OutsideBarTradingSystem identifies the structural second when worth vary expands past the prior bar’s extremes, signaling renewed volatility and directional dedication. Connect the indicator to your chart, begin with the Customary preset on XAUUSD H1, and observe how the vary growth aligns with the momentum strikes you’ll establish manually.

Blissful buying and selling!

Ich Khiem Nguyen

OutsideBarTradingSystem 1.00 — Created 2026-02-24