Outside bar indicator mt4 introduction:
The indicator which we use on mt4 to detect the outside bar candlestick patterns is called the outside bar indicator for mt4. We all know it’s one thing to read and learn about candlestick patterns. But it’s totally a different story to locate them on real-time charts. That’s where this indicator exists to make your job easier.
Working of outside bar indicator:
In order to understand the working of the outside bar indicator we first need to understand the outside bar pattern. Just like in the inside bar candlestick pattern the outside bar is formed when the previous candle totally engulfs the latest candle in front of it.
The outside bar candlestick pattern shows the loss of control in the market and indicates the possible change in trend.
When you apply this indicator on the charts you will be able to see that it will change the color of inside bar candles to blue and outside bar candles to red.
Outside bar indicator settings:
In the settings of this indicator, you can choose a specific color for outside and inside bar candlesticks and you can also choose the thickness of bars that cover the outside and inside bar candlesticks
Trading strategy for outside bar indicator mt4:
Bullish:
The bullish outside candle is a representation of the buyers being in control and the price has high chances of rising up. You should place a pending buy order and just a few pips above the high of the outside bar candle and your take profit will be when you see a bearish outside bar candle
Bearish:
In the bearish outside bar, the sellers are in control, and the price is like to go in a bearish direction. You should place a pending sell order and just a few pips below the low of the outside bar candle and your take profit will be when you see a bullish outside bar candle.
Conclusion:
The outside bar indicator does save you tons of time and is very useful because it also gives you a feature to detect inside bars. But you should always be careful and use it alongside with ATR Channel Indicator for MT4 to increase your chances of making some profit.
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